From 2007 sellers or their estate agents will be required to have key information available at the start of the process of marketing their home. This will be proceeded by a voluntary period of operation and a dry run in 2006 to ensure a smooth and successful introduction of the Packs.
Housing Minister Keith Hill told the Property Forum in London today that the Packs, included in the Housing Act 2004 would help end a shambolic homebuying and selling process.
"The current system forces buyers and sellers to negotiate in the dark, only finding out the facts towards the end of the process. With the Home Information Pack this key information will be available up front. Buyers and sellers will be able negotiate with confidence and transactions can proceed smoothly to a successful completion.
"At present nearly 30 per cent of transactions fail after terms are agreed. With the average cost of each failure at over £1000 per transaction, this leaves consumers footing a bill of £1 million per day in wasted costs. This is unacceptable.
"For the first time we will be able to require estate agents marketing homes for sale to belong to an approved redress scheme. This is something the public and responsible elements of the industry have been crying out for. It will guarantee home buyers and sellers access to redress and help hound rogue agents out of business."
The Minister said the legislation was particularly good news for the property professionals.
"Property professionals and the rest of the industry now have the certainty they need to invest in the new business opportunities the Packs will bring to the buying and selling process.
"A growing number of estate agents and other businesses are already offering Home Information Pack services on a voluntary basis. This means that sellers will not have to wait to take advantage of this new process."
