Assetz® News - Government sets out plans for property market

Government sets out plans for property market

15th June 2006 |

The government has set out a three-part project that it hopes will transform the UK property market.

It is a plan based around improving consumer rights and it will rely on Home Information Packs (Hips), local searches, e-conveyancying and "stronger redress against estate agents when things go wrong".

Hips in particular have provoked mixed reactions and the arguments are likely to roll on until June next year.

According to the Department for Communities and Local Government (DCLG), around £350 million is wasted by buyers and sellers every year because of house sales falling through and this has been offered as the primary reason for the overhaul.

It is claimed that home sales in England and Wales drag on for much longer than they do in almost all other European countries, with consumers left feeling "baffled, misled and even ripped off".

The first part of the transformative plan will see reliable information on houses provided at the earliest possible stage in an attempt to cut down on waste and duplication.

Speeding up sales is the essence of the second part and this will reportedly be achieved by making conveyancing and local searches much cheaper and faster.

The third part, meanwhile, will be centred on offering simplified redress for complaints against estate agents – an issue that was thrust into the public eye with the BBC's recent Whistleblower documentary that exposed some extremely dubious tactics and attitudes.

As has been the case all along, the government argues that the measures will be crucial in bringing greater transparency to the market. Critics suggest that Hips in particular will be needlessly intrusive and that they will negatively impact upon the number of houses put on the market, but this is refuted by supporters of the scheme.

Housing minister Yvette Cooper says: "For too many people, buying or selling their home is still a real nightmare, with long delays and duplication. People should be entitled to proper information at the beginning of the process.

"We know there are still vested interests who make money out of the current system and who are opposed to reform, but this is about getting a better deal for the consumer."

A chief complaint among those who dislike the idea of Hips is that there has been a worrying lack of information so far on exactly how they will function, but the government has moved to resolve this with yesterday's publication.

The packs will include information on searches and surveys, which is an idea that should prevent several buyers needlessly paying to see the same reports. There will also be a Home Condition Report which the government hopes will cut down on sales breaking down when information comes to light at a late stage.

Another point of note is that the Hip will contain an Energy Performance Certificate, showing just how energy efficient the property is.

It seems certain that the Hips issue will continue to divide property experts in the months to come and seeing the packs in widespread use will perhaps be the only way of discovering their true worth.