The OFT is due to publish the findings of its investigation into sale and rent back schemes.
The Office of Fair Trading (OFT) is expected to call for greater protection for vulnerable homeowners against rogue sale and rent back providers when it publishes the findings of its investigation into the sector this week.
People struggling to repay their mortgages are sometimes approached by sale and rent back scheme operators, who offer to purchase their home at a discounted price and charge rental fees to allow the previous owner to remain in the property.
The impact of the credit crunch has encouraged more homeowners to go for the sale and rent back option, causing the schemes to come under greater scrutiny. Critics are concerned that operators may be exploiting some vulnerable people.
A consumer code of practice could be one of the recommendations made by the OFT. It may also decide to refer any issues highlighted in its review to the Competition Commission, the Financial Times claims.
The National Landlords Association (NLA) has already announced its commitment to tackling rogue sale and rent back providers and is set to launch its own voluntary code of practice following industry-wide consultation.
NLA chairman David Salusbury said: "We are under no illusions that some property investors have seen the chance to make a quick buck. However, we firmly believe gambling with people's homes is unacceptable."
Safe Home Income Plans has produced a list of recommendations for homeowners considering sale and rent back. It urges them to speak to their mortgage lender first if they are having trouble meeting monthly repayments.
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