Tuesday, September 02, 2008

Rent Back no longer possible…. Soon?

According to Kevan Keegans’ report “the End of Sell and Rent Back” if the OFT acts on the recommendations of noteworthy organisations (Shelter, Citizens Advice, CML and IMLA) it could either stifle BMV entrepreneurship, or stop it all together.

Lobbying Group

Primary Argument

Implication for Landlords

IMLA / CML

Tax subsidised company buying  at full market value

Elimination of all BMV trades

Shelter

Only Housing Associations to be permitted to own rent backs

Stifling bureaucracy; capital gain opportunities eliminated

Citizens Advice

Ban all advertising; allow only social landlords

Kills demand; end of the free market

CML

Bring under full FSA control

Authorisation, minimum solvency and capital; Monthly reporting, compliance inspections

Table reproduced from Kevan Keegans Article

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