Home Information Packs becoming a ‘Whitehall farce’ warns Bob Blackman

Families may just move beds from their bedrooms to avoid the cost

 

Bob Blackman critcised plans by Labour politicians to move ahead with new red tape on selling your home – so-called Home Information Packs.

 

Under the Government’s confused plans for these Packs, householders will have to pay up to £600 to put up a ‘for sale’ sign, or else be fined by the local council. Yet in the latest twist, the Packs will only be compulsory for four bedroom homes from 1 August 2007, and then phased in for three bedroom homes at an unspecified date, and then all homes at some point.

 

The small print of new Government regulations defines a four bedroom home as a property which is just “marketed” as a four bedroom home. This means that a house which is simply advertised as having “3 bedrooms and a spare room” would not need to spend hundreds of pounds on a Pack. A home owner could just move the bed out of the bedroom to comply with the letter of the regulations.

 

There will be no fall in the potential value of that home if buyers realise that “3 bedrooms and a spare room” is just language for a home with “4 bedrooms” being used to avoid a Pack.

 

Bob Blackman said:

“The Labour Government’s plans for Home Information Packs are turning into a Whitehall farce. Just by moving a bed out of one of your bedrooms will avoid the need for family homes to pay for these expensive and unwanted Packs.

 

“Moving home is one of the most stressful things anyone can do. Yet this new red tape threatens to make it worse, not better. Rather than protecting consumers in Harrow, I fear these new regulations will cause public confusion and undermine the stability of the housing market. Conservatives are calling on Gordon Brown to scrap this chaotic bureaucracy.”

 

 

Background Information

 

Despite warnings from across the housing industry about the flaws in the whole scheme, the Government announced on 11 June that Home Information Packs will still be introduced - in 3 stages:

 

  • Homes with 4 or more bedrooms - 11 August
  • Homes with 3 bedrooms - date to be announced
  • All other homes - date to be announced

http://www.homeinformationpacks.gov.uk/pdf/ImplementationPlan.pdf

Homes put on the market before these various ‘commencement’ stages will not need a Pack.

 

The Packs which may cost up to £600 for a typical (freehold) home, must contain as a minimum:

  • Index
  • Energy Performance Certificate
  • Sale statement
  • Title documents for the property
  • Local authority and drainage searches
  • Insurance and lease details if a leasehold property.

Last July, the Government performed a U-turn and resolved to make the crucial ‘Home Condition Report’ (HCR) element of the Packs voluntary. The HCR element - a detailed analysis of the features and state of a property - was notionally supposed to replace valuations and surveys.

 

Obscure regulations published out on 18 June classify a ‘four bedroom home’ for the first time. It is self-defined as a home which is simply advertised as having four bedrooms.

“A residential property shall be regarded as having or expected to have four bedrooms or more if the manner in which the property is marketed indicates that it has or is expected to have four bedrooms or more.”

 

Housing Act 2004 (Commencement No. 8) (England and Wales) Order 2007, clause 4a.

http://www.opsi.gov.uk/si/si2007/20071668.htm

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