According to Safe Home Income Plans (Ship), regulation for home reversion plans could be in place by early 2007. They believe that independent financial advisers would benefit from the new regulations, as many were reluctant to recommend an unregulated product. The legislative process for the Home Reversion Bill has been accelerated by an earlier than expected third reading. This could result in the bill getting Royal Assent before the New Year and will mean the final phase of consultation will be completed during the third quarter of 2006.
Our view
It should be sooner - this is not a huge leap - lifetime mortgages (equity release schemes) are already regulated so why reversion schemes (where you sell a share of your home) cannot be regulated today we do not know.