Government defends home information packs

Monday, 31 October 2005 12:00 AM

Ministers have today leapt to the defence of home information packs (Hips) after the government paved the way for their introduction.

The controversial proposals, which could add up to £1,000 to the cost of selling a house, have attracted criticism from opposition politicians and some industry groups.

The pack, which will have to be supplied by anyone selling a house in England and Wales from spring 2007, will contain an array of documents including copies of deeds and a home condition report.

Critics of the plans say a home condition report is a waste of money because buyers will want to appoint their own surveyor rather than trust the report provided by the seller.

But Housing minister Yvette Cooper disagreed. "I think actually a lot of people who are buying their own home have no idea who's doing the survey at the moment, whether it's somebody who's been trained in the last 18 months or whether it's somebody that's been trained for 20 years," she told Channel4 News.

She also confirmed that there would be legal redress for buyers where a home condition report had missed something that came to light after the sale had gone through.

Liberal Democrat local government spokesman Sarah Teather had warned: "Most buyers will simply not trust the report of a home inspector paid by the seller and will end up paying for their own survey."

Her comments were today echoed by shadow local government secretary Caroline Spelman, who said employing a surveyor as a buyer was "very different from the vendor paying money to a surveyor to undertake that report . from the point of view of the vendor".

The plans do, however, have the backing of some estate agents. Paul Smith, chief executive of Spicerhaart, said home information packs would not be a "crippling financial burden on the sellers".

"Currently buyers are footing the bill if there is anything wrong with the property and the introduction of Hips will simply switch the onus from the buyers to the sellers," he said.

The government today laid down draft regulations setting out plans to go ahead with home information packs, which were conceived as a way to speed up and simplify the process of selling a house, as set out by the Housing Act 2004.

For more information on Hips see www.odpm.gov.uk

What a home information pack will contain

• 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 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 details of how energy efficient the property is

For leaseholders the pack will also include:

• The lease
  
• Details of the landlord or managing company
  
• 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

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• uk property news