Clause 1 - Financial Services and Markets Act 2000: regulated activities
Regulation of Financial Services (Land Transactions) Bill
10:45 am
Mark Field (Shadow Minister, Treasury; Cities of London and Westminster, Conservative)
It is important to stress that not only pensioners but middle-aged folk are looking to release some of the equity in their home, in order to allow their children to get a foothold on the otherwise increasingly elusive property ladder, and will therefore benefit from home reversion and equity release plans. As I mentioned on Second Reading, that is a positive development. I suspect that, in the years and perhaps decades ahead, that area will grow.
I am happy to withdraw our amendment. I am reassured by what the Minister said. I accept that there was a comprehensive consultation exercise throughout the industry. I must confess that it is a matter of some concern that unscrupulous lenders might utilise the cumulative borrowing arrangements, but that is almost an inevitable part of any de minimis provision. However, there could be serious implications; let us see how the area develops in the years ahead.
My concern is that the increasing burden of regulation, and its sheer cost, may dissuade some of the bigger operators from entering the market at anything below a particular level and that there may, in a sense, be a de facto de minimis provision, which would be regrettable. Let us see how that goes. I am reassured by the Minister's words. On that basis, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.