Sell and rent back schemes could boom in popularity as a report by Ernst & Young warns the UK is more vulnerable to rising food prices.
It seems the incessant rise in the cost of living isn't going to abate any time soon. A recent report by Ernst & Young says that the UK is more prone to food price rises than the rest of Europe. Sell and rent back schemes could boom as more home owners find their monthly incomes simply aren't matching their increased outgoings.
Sell and Rent Back: Food Prices set to Grow
The increases in the cost of food alone wouldn't be too serious a threat to UK customers. But in conjunction with rising mortgage rates, escalating utility bills and inflated petrol prices, more home owners are being forced into further debt; for some, a sell and rent back scheme offers a speedy solution to financial difficulties.
Fast House Sale: Dealing with Debt
Ernst & Young say that the UK has a trade deficit in food which will force retailers to put prices up even further. Food price rises have been put down to two main factors – poor climates in food growing countries and global population growth. Countries such as India, China and Russia are becoming increasingly wealthy – with affluent demands. Meanwhile, the UK is facing the risk of recession as more homeowners turn to a fast house sale to stop repossession risks or deal with debt.
Stopping Repossession with a Sell and Rent Back Scheme
Things, Ernst & Jones say, will only get worse as the population is expected to increase by almost two billion in the next couple of decades. In poorer countries, food prices are causing a huge impact on many people's standard of living, as cut backs have to be made. And in the UK, although a wealthy country, it's another knock for the average earner, whose affordability is being stretched to the max. Those with debt are at risk of that debt escalating fast, and in some cases it can quickly lead to arrears and repossession orders.
Food, Fuel and Housing
As essentials such as food, petrol and utility bills are sky-rocketing, inflation will continue to rise impacting on mortgage affordability. For those home owners who experience a stroke of bad luck, such as a change in their finances or circumstances, they may have no choice but to sell their homes fast, or alternatively opt for a sell and rent back scheme.
If you're looking for a sell and rent back scheme contact Create Real Estate