Home information packs 'quality' warning

Wednesday, 10 May 2006 12:00 AM

A home information pack provider is warning that without better regulation, some packs "will not be worth the paper they are printed on".

Spring Move says sellers need better protection from rogue companies in the provision of home information packs, which will become compulsory in mid 2007.

It warns that the proposed fine of £200 for providing an inadequate home information pack is unlikely to be a deterrent in a market set to be worth about £1.4 billion a year.

From June 1st 2007 all homeowners wanting to sell their property will have to pay about £600 for a home information pack, which will contain information on their property including a home condition report, prior to putting it on the market.

The government says the introduction of the packs will help to reduce the £1 million wasted every day by sales falling through by providing information up front to buyers on the condition of the home they wish to buy.

But Spring Move warns that some companies could see home information packs as a 'licence to print money' and rush to market with poor propositions.

There are already concerns that there will be a shortage of home inspectors. Up to 7,500 will be needed, but only 4,000 people are currently training to become a home inspector.

"We are in favour of HIPs but we are concerned that some companies will enter this market offering poor quality home information packs that in some cases will not be worth the paper they are printed on," said Spring Move chairman Stephen Foden.

"If the industry wants consumers to rely on HIPs to help make their purchasing decisions, we must introduce safeguards against the production of wrong or misleading information.

"Failure to do this could prove very costly and people could be within their rights to sue estate agents, HIP providers and home conditions inspectors for compensation."

Spring Move would like to see a best practice charter clarifying charging structures, credit arrangements, reliability of content and an agreed format of presentation.

Safeguards should also govern the collection and interpretation of information, and a requirement for all HIP providers to have professional indemnity insurance.

"We need a best practice charter for two reasons," Mr Foden added.

"Firstly, best practice guidelines provide a benchmark for the consumer, and as a responsible industry we must ensure that our customers reap the benefits of a competitive marketplace.

"Secondly, a best practice charter will remove doubt and instil trust in what has become a hazy, confusing product."

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