§ Mr. GardinerTo ask the Chancellor of the Exchequer (1) what support he has received from consumer organisations for his plan for the Financial Services Authority to require a valuation of properties used as collateral for home reversion plans; [145721]
(2) if he will draw up tables of guidance on the amount of money people should expect when taking out home reversion products; and if he will discuss this with (a) consumer groups, (b) mortgage companies and (c) financial advisers. 1145722]
§ Ruth KellyThe Government are carrying out an open consultation on whether the Financial Services Authority (FSA) should regulate home reversion plans. We published a consultation paper 'Regulating home reversion plans' on 11 November and responses are due to be returned by 13 February 2004.
The issue of property valuation and pricing of reversion plans is considered in paragraphs 21 to 23 of the consultation document. If it is decided that the Financial Services Authority (FSA) should regulate home reversion plans, the details of the regime will be decided by the FSA on the basis of a separate consultation and cost/benefit analysis.