The sell and rent back industry could boom if billionaire George Soros is right: he believes the UK is in a fragile position to weather the economic storms.
More homeowners may be forced into sell and rent back schemes to stop house repossession if billionaire investor George Soros is right. Mr Soros predicts that the UK is worse-placed than the States to weather the coming economic storm. It's a gloomy prediction considering the extent of the repossessions and foreclosures America has witnessed in recent months. Sell and rent back schemes could become increasingly in demand as more homeowners struggle with their mortgage repayments.
Sell and Rent Back Industry – Effects still to be Felt
George Soros told the BBC that the acute stage of the global credit crunch could be over, but the fallout will still make itself known in global economies. Soros warns the bubbles and super booms witnessed in the economy since the end of World War Two could be about to burst. Mr Soros told the BBC that a longer and severer US slowdown is expected than first thought – and more worryingly for UK homeowners, he predicted the British economy could be even worse. As repossession figures are already rising and more homeowners are dodging repossession risks by opting for a sell and rent back scheme, his predictions are worrying. Mr Soros believes the UK is worse positioned due to the fact its house prices were so over-inflated.
Sell and Rent Back – Housing Victims
Mr Soros predicted that the Bank of England would keep rates and inflation high to allow the economy to recover – which is bad news for home owners stung by higher mortgage rates. A sell and rent back scheme is one way of escaping the financial difficulties until the economy stabilises once more. Mr Soros's comments come at a time when the governor of the Bank of England warned that inflation would continue to rise as the economy slows. Bankers who previously were happy to offer over-lending for mortgages are now being blamed for those homeowners unable to keep up with mortgage rises and an increase in affordability. For them, sell house and rent back schemes offer one way out of the repossession risk.
As the market correction in property prices continues and house prices plummet, releasing equity is simply not an option for some; a sell house and rent back scheme offers one way for them to stay in the family home, without succumbing to repossession.
If you're looking for a sell and rent back scheme, contact Create Real Estate