One of the major issues currently being discussed at the moment is the sudden rise of sell home and rent back companies in the sector. As a relatively new concept, it is open to much suspicion, especially as it tends to blur the lines of the different market areas.

The basic idea is that a person sells their house to a specialist cash buying company and then rent the property back at local market rent. Although debt management is the most talked about motivations for this, there are a number of different reasons that people decide upon this course of action, including divorce or separation, equity release, expedient sales or emigration.

There are advantages to sell home and rent back for all of these motivations. Concerning debt management, the ability for a sale to be completed within 48 hours is advantageous when trying to stop house repossession. The rent back company is also able to eliminate up to 80 percent of all unsecured debt without using any proceed from the sale, due to a dedicated Debt Management Department, a service offered as a part of the package. With regards to equity release, the major benefit over traditional equity release schemes is the ability to unlock 100 percent of the property’s equity.