UK NEWS
HOME PACKS WILL 'CREATE A SLUMP'
HIPs have caused Labour MP Ruth Kelly a headache or two
By Jason Groves, Political Correspondent
HOME information packs will lead to a slump in the number of properties being put on sale, warns the Government’s own study into the controversial initiative.
The official impact assessment, which was slipped out this week, says tens of thousands of potential sellers will be put off by the £500 cost of the packs, due to be launched on August 1.
The study predicts the number of homes on sale will fall by at least 10 per cent.
Tory Shadow housing minister Michael Gove last night called on the Government to abandon the plans, which have already been watered down and delayed in the face of massive opposition.
Mr Gove said: “This explosive Government document reveals that Labour ministers have been warned about the potentially damaging effect home information packs will have on sellers and the housing market.
“Unfortunately, it seems they have ignored the warnings and instead pressed ahead with this costly piece of red tape, which won’t deliver their promises to help first-time buyers or tackle climate change. Labour ministers need to think again. It’s not too late for them to admit their mistakes.”
|
The impact assessment predicts that many owners who may have listed their homes to test the market will no longer bother
|
|
|
The impact assessment predicts that many owners who may have listed their homes to test the market will no longer bother.
Ministers insist this will not lead to a fall in the total number of homes sold because some people are not serious
about selling but estate agents warn the move will distort the market and lead to fewer sales.
Peter Bolton-King, chief executive of the National Association of Estate Agents, said: “We have been saying for years that home packs will reduce the number of listings, only for ministers to say we were talking rubbish. Now they have had to admit it.
“I don’t accept that it will not affect sales. I have been in the industry 35 years and I can think of a huge number of impulse sales where people have dipped their toe in the market, found the temperature to their liking and decided to sell.
“We are particularly worried about first-time sellers who may not have much in the way of savings and may decide it’s not worth the risk.”
The packs provide basic information about a home including local authority searches and details about whether the property is environmentally friendly.
Ministers claim the packs will speed up the buying process and lead to savings of £80million a year But in a further blow, the study shows that searches will have to be renewed if a property has not sold within six months.
It means a quarter of all sellers, about 500,000 a year, will have to renew information in their packs at least once, at a cost of up to £270 a time. The assessment also shows the Government will have to give councils £2.2million a year to employ an army of inspectors to police the scheme.
Figures released this week showed a record number of homes were put on the market last month in a bid to beat the packs’ original June 1 deadline.
Last year the Government had to abandon plans to include a property survey in the pack after mortgage lenders warned they would not accept it as proof of a home’s condition. Ministers last month had to delay the scheme because of legal challenges and a shortage of inspectors.
Communities Secretary Ruth Kelly said the scheme would be delayed by two months and would initially apply only to homes with four bedrooms or more, leading observers to believe it would be abandoned in the summer. However, the Department for Communities and Local Government says the packs will be applied to all properties this year and claims the cost is “unlikely to deter those who are serious about selling”.
HIPS A BRIDGE TO FAR
20.06.07, 11:07am
The actual hips pack is flawed, in that most of the local searches in these packs are not from the Local Authority.
This will not show the most relevant information concerning the home or flat, and will cause delays down the line as building societies and your buyers solicitors will require new searches .
Costing another £150
They really should be left to go away quietly, the Epc should be Kept as these are costing from just £45.
Chris
Posted by: HIPS Report Comment
HOME PACKS WILL 'CREATE A SLUMP'
17.06.07, 4:59pm
The sooner these Hip's come in the better. When my partner and I were first trying to get on the property ladder 2 years ago we got stung by two of these people testing the market. Cost us in time, money and stress. One of them even let us go so far as to get a survey done, but when it came back with a few minor issues, they pulled out.
I only hope it's not too long before Home Condition Reports are mandatory also.
Posted by: MattW Report Comment
To view all 'Have Your Say' comments, click this button...