Government defends home sellers' pack
Thursday, November 10, 2005
Claims that house-sellers would be forced to spend up to £1,000 on Home Information Packs have been rejected by the Government.
The packs are being introduced in early 2007 as part of Government plans to change the way property is bought and sold.
Homeowners will have to compile one of the packs, which will include a new "home condition report" based on a professional survey of the property, evidence of ownership and local authority searches, before they can put their property up for sale.
But the Government rejected claims that the packs would cost up to £1,000, instead sticking by its original estimate that the bill was more likely to average £635.
The home condition report, which will contribute around £350 to the total, will go into greater depth than the current valuation carried out by a mortgage lender, but will not be as thorough as the homebuyer's survey and valuation or a full building survey.
The Government claims the packs will help reduce the £1 million that is wasted each day when property sales fall through after potential buyers have spent hundreds of pounds on valuations, legal fees and searches.
The plans aim to help first-time buyers, who would no longer have to find the money to pay for a survey.
Overall it said the total costs involved for people buying and selling a home were expected to be around the same or cheaper than they are now, with some of the costs switching from buyers to sellers.
Draft regulations have been published, setting out the detail of Home Information Packs, which remain the same as set out in the Housing Act in October 2004.
Housing Minister Yvette Cooper said: "Buying a home is stressful enough without losing hundreds of pounds on legal fees or valuations for properties that then fall through.
"It is crazy that over £1 million a day is wasted like this. Home Information Packs will actually save money and cut waste in buying and selling homes."
source: channel 4 news
The packs are being introduced in early 2007 as part of Government plans to change the way property is bought and sold.
Homeowners will have to compile one of the packs, which will include a new "home condition report" based on a professional survey of the property, evidence of ownership and local authority searches, before they can put their property up for sale.
But the Government rejected claims that the packs would cost up to £1,000, instead sticking by its original estimate that the bill was more likely to average £635.
The home condition report, which will contribute around £350 to the total, will go into greater depth than the current valuation carried out by a mortgage lender, but will not be as thorough as the homebuyer's survey and valuation or a full building survey.
The Government claims the packs will help reduce the £1 million that is wasted each day when property sales fall through after potential buyers have spent hundreds of pounds on valuations, legal fees and searches.
The plans aim to help first-time buyers, who would no longer have to find the money to pay for a survey.
Overall it said the total costs involved for people buying and selling a home were expected to be around the same or cheaper than they are now, with some of the costs switching from buyers to sellers.
Draft regulations have been published, setting out the detail of Home Information Packs, which remain the same as set out in the Housing Act in October 2004.
Housing Minister Yvette Cooper said: "Buying a home is stressful enough without losing hundreds of pounds on legal fees or valuations for properties that then fall through.
"It is crazy that over £1 million a day is wasted like this. Home Information Packs will actually save money and cut waste in buying and selling homes."
source: channel 4 news
