Government Makes Home Information Packs Mandatory From 1 June 2007
Home Information Packs, which are being introduced by the Government to reform the home buying and selling process, will become mandatory from 1 June 2007.
Currently, £1million is wasted every day on failed transactions as buyers often spend hundreds of pounds on valuations, legal advice and searches on transactions that ultimately break down. By providing key information at the beginning of the process, Home Information Packs will prevent waste and significantly cut the number of sales that fall through. The Packs are expected to cost around £600 (plus VAT) for the average home. Most of those costs are currently paid by the buyer.
The Government expects that confirmation of an implementation date will act as a trigger to others who are waiting to begin their training as Home Inspectors as well as provide certainty to organisations who are already preparing to offer Home Information Packs to consumers on a voluntary basis.
To date, seven assessment centres have been established and 1700 people from the surveying and property industry and from other professions are undergoing training for the Home Inspector qualification, with hundreds in the pipeline, waiting for the implementation date to be announced. Research shortly to be published by ODPM will confirm the number of home inspectors expected to be required for June 2007 is between 5000 and 7400.
The next steps for the programme is to establish a certification scheme which is required to provide quality assurance and manage the Home Condition Report and Home Inspector registers. It is expected this scheme will be operating by the summer of 2006. A 'dry run' will follow later in the year designed to provide assurance to the industry and the public in advance of mandatory introduction on 1 June 2007.
Housing Minister Yvette Cooper said, "Too many sales fall through because of delays and late information, wasting money and causing great stress for buyers and sellers, that's why we are introducing the Packs. We have been working with all parts of industry on the detail and this timetable will give them time to fully prepare".
OFT Report on the Search Market
On 21 September 2005, the Office of Fair Trading published its report on the property search market. The report makes a series of recommendations aimed at improving competition and access to property information, including:
- requiring local authorities to provide access to the information needed to complete a home information pack,
- providing local authorities with clearer guidance on how they should set prices for providing property information,
- agreeing revised targets with local authorities to ensure that this information is made available quickly, and
- allowing local authorities to provide electronic local searches to other third parties, in addition to the NLIS channels.
Synactic Ltd to Provide HIP Software
Given the radical changes that are soon to be implemented, Synactic Ltd have been appraising various software options in order to offer clients the appropriate technology required to compile a full HIP package in conjunction with their existing business partners.
The software is designed for ease of use and will allow the conveyancer to control the compilation of the HIP, whilst providing those parties involved, interactive, password protected remote access in order to download documents into the HIP when they are ready. The conveyancer will be able to order all searches on line; the estate agent delivers the property details electronically whilst the conveyancer includes all of the necessary legal documents. This effectively culminates in a complete pack in electronic format, providing flexibility of delivery to the client and other interested parties whilst allowing ease of storage.