Q&A: Home Information Packs

By THIS IS MONEY
Updated: 11:01 EST, 29 July 2005

THE Government's controversial Home Information Packs should finally be introduced in 2007, more than seven years after they were initially mooted. But what are they and what are they designed to do?

What are they?

Home Information Packs will be compiled by the property seller and will include information required by a potential buyer to make an informed decision. Although regulations dictating what will be included are still being drawn-up, it is expected details about a house's structural condition, title deeds and even how efficiently it uses energy will feature. Other information will include a property's condition, local authority records, such as planning permission, and guarantees for double-glazing and boilers.

A property won't be allowed to be put on the market until the buyer can demonstrate they have the pack in place. Under the current situation, buyers need to have an offer accepted before they can start delving into the details of a home, meaning many buyers make offers purely on a cosmetic basis.

When will they be introduced?

Trials will begin next year with a view to a full introduction by 2007. An 'army' of 7,000 home inspectors will need to be recruited and trained before they are officially launched. It is expected the majority of these will come from current chartered surveyors.

Why are they being introduced?

The Government believes the packs will make the home-buying process quicker, cheaper and less prone to collapse. It says that nearly 30% of sales fall through before completion because the buyer finds out key information about the state of property after an offer has been accepted. The Government also argues that the condition of houses will also improve as owners won't be hit with unexpected repair bills.

How will they work?

How much will they cost?

It is thought that homeowners will have to spend £700 on the packs, although the final figure is as yet unknown and has grown steadily since the idea was first mooted more than five years ago. Critics claim the packs will make the homebuying process more expensive and lead to delays in property coming onto the market. However, the Government says that owners will be able to defer payment until a sale is completed.

Instead of a buyer undertaking their own search and surveys after an offer has been accepted, they will have the information required when they visit the property, thus speeding the process up. However, critics claim they packs will fail because lenders will still want their own assessments and buyers may not trust the survey provided.

Who will regulate it?

The Government is looking at establishing a not for profit organisation drawn from the housing industry that will oversee how the packs are being prepared and the accreditation of the home inspectors that will prepare them.