The Scottish Federation of Housing Associations |(SFHA) has called for housing associations to be given extra funds to manage the sale and rent back of properties to homeowners struggling to keep up their mortgage payments.

The call follows recommendation by the Office of Fair Trading (OFT) that the sale and rent back sector is in desperate need of regulation to ensure consumers are protected.

Both the UK and Scottish Governments have called for the sale and rent back sector to be regulated by the Financial Services Authority (FSA).

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However, the SFHA believes that, with additional funds, its members would be best placed to manage the purchase and rental of struggling homeowners' properties.

Andrew Field, Deputy Chief Executive of the SFHA said: "The SFHA is pleased that the Scottish and UK Governments want proper regulation for the sale and rent back market, in order to protect consumers and we believe our members are best placed to do that, if given the necessary powers and funding.

"We would support any government moves to tighten the regulatory framework surrounding sale and rent back schemes, and would also call for further funding for government-led mortgage rescue schemes such as Mortgage to Rent, which allows housing associations to buy and rent back in a highly regulated way, which has the additional advantage of offering full security of tenure for the resident."

(CD/JM)