Growing fears over impact of Home Information Packs on housing market

There are growing fears over the "stability of the housing market" if the Government goes ahead with its controversial Home Information Packs.

Shadow Housing Minister Michael Gove has tabled a Commons motion highlighting key concerns about the new law which comes into force in 2007 forcing sellers to pay around £700 for a pack before he or she puts their home on the market.

Mr Gove is calling for the HIPs to be "delayed or cancelled in order to protect the stability of the housing market."

The first MPs to sign up to the motion include two Labour back benchers and two Liberal Democrats.

President of the National Association of Estate Agents Charles Smailes said :"We have always supported any improvement to the home buying and selling process.

"However, we have major concerns about the Home Information Pack's ability to do this in its current form.

"Many of these concerns are highlighted in the motion put forward by Michael Gove.
"The effect of removing first day marketing rights and the fact that a valuation or structural survey may still be required in addition to the Pack are just some of the issues we would like the Government to address.

"The introduction of HIPs is likely to have a huge effect on the market and we believe there is still a lot of work to be done.

"We have been questioning the Government on its HIPs policy at regular strategy meetings for some time now and fully support Michael Gove's questioning in the form of this early day motion.

"It is extremely encouraging to see the motion being supported by members from all the major parties. This is certainly a step in the right direction and we urge the Government to engage in an open debate on the issues raised as soon as possible."

The Government says HIPs, which will contain a home condition report, survey, searches and other details about the property, will help buyers who pay for a survey up front but then later on lose the property.

But critics say HIPs will add to everyone's costs as building societies will in many cases insist on a separate survey paid for by the buyer before granting a mortgage.

First time sellers will also suffer as they will have to find hundreds of pounds up front before putting their home on the market.

Jon Land
Copyright Press Association 2006.