The Consumers' Association has vowed to remain vigilant to ensure consumers get the best possible protection when entering home reversion schemes and called for a cautious approach.
Responding to news that the schemes are to be regulated CA senior policy advisor Laurence Baxter says: “This is a great day for consumers. The Consumers' Association is very pleased to see that the Treasury has realised the high risk nature of home reversion schemes and that they should be regulated along with other types of products.
“These products, which have a complex definition, will require a careful set of regulations and we shall remain ever vigilant to ensure the rules, when they are released in the next few months, afford the fullest possible protection. Until home reversion schemes are regulated consumers should treat them with caution and consult regulated advisors for equity release advice.”