The Council of Mortgage Lenders (CML) has called for regulation of the sale and rent back sector.

Under these arrangements, homeowners that are facing repossession can sell their property but remain in it as a tenant.

The home is sold at a lower price in return for the option to stay.

But CML spokesman Bernard Clarke has noted that there are a number of concerns, owing to the fact that companies are not regulated in the same way as financial institutions.

"There are issues about the evaluation of property, issues about the advice they may or may not be given and how reliable and independent that advice may be," he explained.

Recent research by charity Shelter found that housing costs are a cause of stress or depression for nearly one in four households, while 16 per cent have used a credit card to help them meet costs over the last year.
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Published on: October 15, 2008