Warning over home info packs

Last Modified: 16 May 2007
By: Bridgid Nzekwu

Homeowners will have to provide buyers with a home information pack from 1 June, despite fears that they could destabilise the housing market.

"You play politics with people's homes at your peril." The warning from the Conservatives as they attempt this afternoon to derail the government's plan to bring in home information packs.

In less than two weeks every home put up for sale in England and Wales must have an HIP with title deeds and an energy performance certificate, costing sellers between £400 and £600.

The government is insisting HIPs will come in on 1 June, despite a legal challenge and dire warnings from critics who claim HIPs will undermine the stability of the whole housing market and cause sellers unnecessary stress.

Amar Dhanota is among the thousands of homeowners rushing to put their properties on the market before the introduction of home information packs next month.

She's selling her house in Woodford, Essex, as well as a flat in Canary Wharf which she bought two years ago to let out as an investment. Her original plan was to sell both properties later this year.

There are just two weeks left before home information packs become compulsory in England and Wales. But their introduction is now seriously under threat.

In addition to an attempt by Conservative MPs this afternoon to block them in the House of Commons, the Royal Institute of Chartered Surveyors has mounted mounting a legal challenge against the packs.

The institute has applied for a judicial review on the grounds that the government has not allowed enough consultation with the industry and that there aren't enough energy assessors.

It claims that in London there are only 80 asessors but 160,000 houses sold each year. It also claims the packs are flawed without mandatory home condition reports.

And it believes the packs will have a negative effect on the market, saying they'll reduce the supply of homes and push up prices.

The Royal Institute of Chartered Surveyors has applied for a judicial review on the grounds that the government has not allowed enough consultation with the industry and that there aren't enough energy assessors.

The government insists the legal challenge is groundless and that home information packs will go ahead as planned. But many estate agents are nervous.

Some in the industry are even warning that if the packs are blocked, the government could face massive compensation claims from those who've spent money getting ready. Pack supporters insist everybody will lose out if the reforms don't go ahead.

The Royal Institute of Chartered Surveyors has asked for the judicial review hearing on home information packs to take place in seven days' time rather than the usual 21 days. But the government's first obstacle is the vote in the Commons in the next few hours.

And there is a strong chance the House of Lords will delay the introduction of the packs when they vote next week. A lords committee has already said it has "rarely seen such widespread opposition to proposals".