A new trade association for sale-and-rent-back companies has been launched in a bid to alleviate concerns about the sector.

It is hoped that the Property Buyers Association's (Probas) strict code of practice, that all members have to sign up to, will help to raise standards in the industry.

Probas aims to make the work of the companies clearer to understand and provide greater assurance for consumers.

The terms of the code state that members must provide people with key facts about the scheme in line with the Financial Services Authority's policy on treating customers fairly.

The group has been founded by A Quick Sale, UK Property Buyers and North East Property Buyers.

Sale-and-rent-back companies buy the homes of people who are in danger of having them repossessed and then rent them back to them.

But the sector has been criticised, with claims some firms pay less than 60% of the market value for properties, while others levy steep rent increases and some evicted people after just a year.

Citizens Advice has branded the schemes a "disaster waiting to happen" and called for the sector to be regulated to help protect vulnerable consumers, while the Council of Mortgage Lenders has also expressed concern about the firms.

The creation of Probas follows discussions between the leading players in the industry, the Treasury and Citizens Advice.

Richard Watters, managing director of A Quick Sale, said: "There has been widespread concern from consumer protection agencies about the nature of the sell-and-rent-back industry and, unfortunately, there are organisations within our sector that are less than scrupulous in their standards of practice.

"As a company that operates to very high ethical and service standards, I'm delighted that A Quick Sale has been instrumental in helping take the next step towards regulation with the introduction of Probas.

"Greater protection for the consumer is vital and I hope A Quick Sale's membership of Probas will give potential customers greater confidence that they are dealing with a reputable company that provides appropriate protection and recompense."

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