Section: Home Ownership
Home Information Packs Update
The Government published, for consultation, draft regulations of the contents on the new Home Information Packs, which aim to help first-time buyers and cut the overall costs of buying and selling a home. Currently, more than a quarter of all sales fall through after an offer has been accepted. About half fail because of the problems that emerge when surveys or valuation are carried out.
One million pounds a day is wasted on failed transactions, as buyers often spend hundreds of pounds on valuations, legal advice, and searches for homes that ultimately fall through. By providing the same information at the beginning of the process, Home Information Packs aim to prevent waste and significantly cut the number of sales that fall through.
The general content and cost of the pack remain the same as discussed in Parliament during the course of the Bill. Most of the information in the pack already has to be provided under current arrangements, but this is often very late in the process. The contents include:
- A sale statement, describing the property being sold.
- Forms the seller can use to give more information about the property, and fixtures and fittings.
- Evidence of title from the Land Registry, or copies of the deeds to the property.
- Replies to standard searches, such as planning permissions, road schemes, water, and drainage.
- Warranties and guarantees for building work.
- A Home Condition Report, including how energy efficient the property is.
For leaseholders, the pack will also include:
- The lease.
- Details of and regulations made by the landlord or management company.
- Details of service charges and recent requests for payments for ground rent and insurance.
- Information about current and planned works.
The packs will include Home Condition Reports (HCRs), similar to the condition surveys currently carried out. Only inspectors qualifying under a certification scheme approved by the Secretary of State will be able to prepare HCRs. The scheme will be responsible for monitoring and auditing inspectors' work. This will be robust to ensure that standards are maintained. The HCR will be an objective report on the condition of the property that buyers, sellers, and lenders will have a legal right to rely on. Home inspectors will need to have suitable insurance that will ensure consumers are properly protected.
Legislation to introduce home information packs was introduced in the Housing Act 2004, which became law on 18 November 2004. Compulsory home information packs will be introduced throughout England and Wales on 1 June 2007. In Scotland, the Housing Bill, which is currently before the Scottish Parliament, includes a power to introduce measures similar to Home Information Packs, in Scotland.
© Copyright 1996 - 2008 UK Housing Ltd. Housing Monthly Diary
Issue: January 2006 Reporting on Sept.-Dec. 2005
- Allocations & Transfers
- Antisocial Behaviour & Nuisance
- Home Ownership
- Homelessness & Asylum Seekers
- Housing Benefit & Council Tax
- Housing Grants
- Housing Management
- Private Sector
- Right to Buy
- Security of Tenure
- Social Landlords
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