The NAEA has lashed out at the government’s draft Housing Bill, published yesterday, saying that it has failed to accommodate concerns over the introduction of sellers’ packs.
The packs, now re-branded Home Information Packs or HIPs, have been a bone of contention for the NAEA and its members since the government first tried to introduce them in 2000.
Contrary to the government’s beliefs, the NAEA claims that HIPs will damage, not improve, the housing market by adding to the time and cost of selling a house.
Julie Westby, president of the NAEA said: “The proposed introduction of HIPs is a dangerous move by the government. It has been poorly researched, and imposes extra costs and bureaucracy in and already complex market. It could have serious repercussions on housing transactions, and consequently on house prices. The vast majority of our members view HIPs as detrimental to the home buying process and not at all in the best interest of consumers.”
“We urge the government to listen to our concerns and incorporate much needed changes to these proposals. The HIP is yet another nanny state policy produced by a government with honourable intentions but a complete lack of understanding as to how the housing market works”.
The NAEA states that producing the HIPs will take 2 weeks, cost around £600, and must be completed before a property is marketed, which would prevent quick deals and take the spontaneity out of the housing market.
It added that the main plank of the pack, the Home Condition Report would not be accepted by lenders as a basis for valuation and would mean that two surveys would be required, and that those conducting the survey would not be fully qualified surveyors but Home Inspectors.
The NAEA said that the legislation would cost the home buying process £500m, as 80% of current market transactions do not have a formal surveys.
It added that the Government should concentrate on pushing through initiatives such as e-conveyancing and the National Land Information Service, which would render the packs invalid.
Research by Friends Provident recently indicated that housing transactions could fall by as much as 30% as a result of the introduction of the packs.
References: EGi News 01/04/03
