The government has published a draft Housing Bill to introduce the controversial seller’s pack, which has been renamed as the “home information pack”.
The bill will require estate agents and anyone else marketing a home for sale to spend thousands of pounds putting together an information pack about the property, for prospective buyers.
Housing minister Lord Rooker claimed: “The present home buying and selling process gives consumers a raw deal.
“We have a ridiculous system where key information needed by buyers and sellers is not available until after terms have been negotiated and agreed.
“It is hardly surprising so many transactions run into delays and that terms negotiated on the basis of inadequate information do not stick.
“We are going to put this right by ensuring key information is available up front at the start of the transaction process in the home information pack, therefore making the home buying and selling process more transparent, more certain, faster and consumer friendly.”
The packs, which will be paid for by the vendor of the property, will have to include:
- terms of sale
- evidence of title
- replies to standard searches, planning consents, agreements and directions, and building control certificates
- replies to preliminary enquiries made on behalf of buyers
- a home condition report based on a professional survey of the property, including an energy efficiency assessment
- for new properties, copies of warranties and guarantees
- for leasehold properties: a copy of the lease, most recent service charge accounts and receipts, building insurance policy details and payment receipts, regulations made by the landlord or management company, and memorandum and articles of the landlord or management company
Lord Rooker added that the packs would be compulsory.
Civil sanctions, instead of the criminal sanctions that were originally proposed by the government, will be used to enforce use of the packs.
The government dropped criminal sanctions following massive opposition from the RICS and the National Association of Estate Agents.
The government is also consulting on the detail of the home information pack and its application to areas of low demand.
Legislation to introduce seller’s packs was originally introduced in the Homes Bill on 13 December 2000, but was dropped after it failed to pass before the dissolution of Parliament for the 2001 general election.
Elements of the Homes Bill were subsequently passed into law as the Homelessness Act.
The bill also introduces regulations to penalise bad landlords and a licensing regime for homes shared by more than one family.
Lord Rooker said that four fifths of households in England and Wales live in private sector homes, whether as tenants or as homeowners.
“Responsibility for these homes rests first and foremost with the homeowner or landlord,” said the minister.
“But the government must ensure those in the private sector, as much as those in social housing, have the opportunity of a decent home.”
The proposals will introduce a new mandatory licensing scheme to protect tenants living in houses of multiple occupancy (HMO).
“HMOs are a key source of housing for some of the most vulnerable in society, including young people, students, and those who are socially or economically disadvantaged.
“Our new licensing proposals will improve standards and safety in HMOs, while recognising the importance of maintaining an adequate supply of rented accommodation.”
The bill also extends the period after which council tenants qualify for the right to buy their homes at a discount from two years to five.
“It will make it harder for companies and individuals that exploit the discount rules and benefit at the expense of those who need affordable housing,” said Lord Rooker.
The bill will also give councils powers to introduce a licensing scheme for private landlords, primarily in areas of low housing demand.
All private landlords in these areas will be required to obtain a licence to rent out their property.
The licensing regime will relate to whether or not a landlord is a fit and proper person to let property.
Licensees will be required to meet minimum management standards.
The draft bill will also introduce a new social housing ombudsman for Wales to investigate complaints against registered social landlords.
References: EGi News 31/03/03
