NAEA say the government’s response to Home Information Packs is inadequate

A survey of National Association of Estate Agent (NAEA) members has found that the vast majority of the UK’s leading estate agency body overwhelmingly supported the critical findings of the Housing, Planning, Local Government and the Regions Committee on the Draft Housing Bill. In its response the housing minster Keith Hill says they will accept “unconditionally a number of recommendations and undertake to consider more.”

This we fully applaud although the Minister chose not to elaborate when he made his response to the Select Committee. But he reiterates that the government will press ahead with the introduction of Home Information Packs (HIPs) which he claims will make the buying/selling process more certain, transparent and consumer friendly.

On these points the NAEA cannot agree:

- We still believe the introduction of HIPs (as Sellers Packs are now called) could seriously slow the market. This is because each seller will now have to find at least £600 to compile a pack.

- No house under the original proposal could be marketed if it did not have a HIP. That may take 10 days or even more. Agents believe that sellers will not like this and it will hamper the agent’s role – to sell houses. It certainly does not act in favour of house sellers because it will actually delay a sale or could lead to willing buyers seeking other properties.

- Nearly 80% of buyers do not bother with a survey choosing to rely on the valuation of their lender. That is their democratic right. Under the Housing Bill they must have a Home Condition Report. The sheer scale of finding enough people to carry out some 1.5million surveys a year may prove insurmountable.

- Government bodies have estimated that 8,000-10,000 so called Home Inspectors will be needed. They will have to be trained up to evaluate the condition of a house (but will offer no remedial advice). These people will not have the expertise of a qualified Chartered Surveyor.

- The NAEA is seriously concerned the buyer will not trust a condition report, compiled on behalf of sellers and paid for by him.

- Although trained up to the job the UK’s insurance industry has shown reluctance to insure these putative surveyors. So who will cover them in the event of a negligence claim? So far no scheme is in place.

On 22 July 2003, the Select Committee released their findings. They found that the Draft Housing Bill would need “much more work… before the Bill even gets a Second Reading,” and particularly highlighted the insufficient piloting of the Home Information Packs (HIPs).

The NAEA continues to endorse this statement. Melfyn Williams, the NAEA’s president, commented: “The NAEA is disappointed that despite widespread industry concerns the government appears to remain committed to introducing further red tape bureaucracy and additional cost into the home buying process. While this legislation may suit the government’s agenda it does not suit the UK’s home owning public.”