Forum Brief: Home information packs

Home sellers will soon have to pay for vital documents under plans unveiled by the government on Monday.

Ministers announced that their pilot scheme of "sellers' packs" will now be extended nationwide.

A spokeswoman for the ODPM told ePolitix.com: "The government is committed to making it easier for people buying and selling homes in England and Wales through a new home information pack.

"Research across a range of housing markets confirms the present home buying and selling process in England and Wales is among the slowest in Europe, is fraught with delays and failed transactions, encourages problems and does not look after the interests of home buyers and sellers.

"The problem is that under the present system key information required to inform buyers' and seller's decisions only becomes available after terms have been negotiated and agreed. Home information packs will address this by ensuring key information is available up front.

"Home Information packs are used in other countries, notably Denmark and New South Wales in Australia, and work well. There are also several home information pack schemes operating successfully in England and Wales.

"Home information packs have to be compulsory to ensure that every one can benefit from them. Voluntary arrangements would not ensure that all homes are marketed with a pack, and would not achieve the objective of improving the process for the benefit of consumers. Most transactions are part of a chain and a single missing pack in the chain could cancel out the benefits of all the others."

Edward Davey, ODPM spokesman, said: "Red tape and bureaucracy in house purchasing need to be radically reduced. The government's determination to push ahead with sellers' packs is bad news for home owners across the country.

"These packs will make it more expensive to sell a property. Ministers should listen and drop this idea once and for all."

Forum Response: National Association of Estate Agents

Peter Bolton King, chief executive of National Association of Estate Agents, told ePolitix.com: "We are pleased that the government accepts that there are still many issues to be resolved. Final details will not however be published until after royal assent. We are concerned that this push for legislation is rather like 'bill and design' rather than 'design and bill' which surely should be the approach.

"The ODPM has not addressed our concerns over the instant marketing of properties, which in effect means the inability to even tell someone that a property is available until the home information pack is produced. The government has not as yet delivered a common sense and workable solution to this. Most sellers are not aware that if this bill becomes law they will have to stump up at least £600 just to put their home on the market.

"The government has clearly accepted that there is a concern as to whether sufficient home inspectors will be available to the extent that they have stated that Home Condition Reports will not be introduced until they are satisfied enough inspectors will be available.

"We note the government has accepted our concerns that pilot studies are of very limited use and provide insufficient results.

"Whilst there are many outstanding issues yet to be resolved the NAEA is pleased that the government appears to be listening to the concerns of the industry and we will continue to fight for a workable solution to improving the buying and selling process."

Consumers' Association

Emma Harrison, senior public affairs officer at the Consumers' Association, said: "Consumers' Association has been campaigning on this issue to expose the failures in the current system and the lack of information freely available to consumers. CA is therefore delighted that the government has again gone on record as being committed to Home Information Packs.

"Once these packs are introduced consumers will be able to make more informed decisions when deciding whether to make an offer on a property.

"The packs should also take some of the heartache out of buying by helping prevent failed transactions, often caused by poor survey results and legal issues."

Forum Response: Council of Mortgage Lenders

A spokeswoman for the CML told ePolitix.com: "We share the government's desire to make the home-buying process easier, quicker and less stressful.

"But there is an urgent need now for the government to settle the practical problems which will act as a barrier to successful implementation.

"We have been involved in the debate about the introduction of home information packs since they were first suggested but, six years on, we are still warning how important it is to address and resolve the important practical issues before rolling out legislation.

"Notably, it is still unclear how the proposed new home inspectors will be trained and qualified, and whether professional indemnity for them will be widely available.

"Our fear is that if the proposals are implemented without addressing these concerns, the introduction of home information packs could create more problems than they will solve for people buying and selling homes."