Liberal Democrat Treasury spokesman Vince Cable welcomed the Treasury's decision to regulate home reversion schemes, and said home reversion providers that have already set their own reputation on the line with self regulation would be pleased.
But he says there will always be problems with introducing regulation as it can be costly and intrusive or effectively box ticking. He underlines the need for it to be done intelligently.
He says: “If equity release is going to develop in an orderly way consumer confidence has to be built on. There has to be regulation to prevent abuse, particularly where there has been abuse in the past.”