A homeowner advice firm believes new regulation from the Financial Services Authority (FSA) could boost standards in the sale and rentback (SRB) sector.

Part-time landlords who operate as SRB companies could be replaced by well-regulated, responsible providers as a result of the new standards being put in place, according to Al Elliott, co-owner of the Homeowners Advice Centre.

It follows a report by the Office of Fair Trading last year which found that a small number of private landlords might have been taking advantage of vulnerable homeowners facing repossession by enticing them in to SRB schemes.

Regulation on SRB has been welcomed by leading players in the private-rented sector, such as the National Landlords Association (NLA).

Meanwhile, recent research by Business Development Research Consultants suggested that a number of homeowners have been opting for SRB schemes from professional landlords.

A study by the firm into the private-rented sector, published last month, found that landlords who own 20 properties or more were boosting their profits by utilising opportunities provided by low house prices, repossessions, auctions and SRB schemes.ADNFCR-2002-ID-19017684-ADNFCR

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