As it is debated in the House of Lords over the following week.
The Bill provides the vehicle by which the long-debated Home Information Packs (HIPs) will be introduced, making it a legal requirement for every home seller to have produced a detailed pack of information before they can put their property up for sale. Estate agents fear this will severely affect activity in the market as sellers will have to wait for up to four weeks before they can begin to market their home.
Estate agents estimate that at any one time, approximately 25% of homes on the market are speculatively up for sale, as homeowners test the market or wait to see what other properties are available to them. The restrictions on the first day marketing of properties will also limit more spontaneous decisions to sell which are often made if homeowners see their ‘dream’ property and have to make a quick sale of their own home.
The NAEA believe that sellers should still have the right to begin marketing their property straight away while a pack is being prepared. It strongly supports an amendment to the Bill which is attracting wide cross party support and that would have the effect of allowing one day marketing to continue whilst a HIP is compiled. The amendment is also supported by the Council of Mortgage Lenders and the Law Society.
Peter Bolton King, Chief Executive of the NAEA, comments: “Billions could be wiped off the economy if these proposals go ahead unchanged. The public has a fundamental right to market their homes, which the government cannot ignore. By passing this amendment, the House of Lords can preserve an important freedom for home owners whilst supporting the benefits that HIPs will bring for house buyers.”
