If you are one of the million people who has moved house in the last year, you will have had an enormous amount of expense without forking out for yet more government gimmicks. A controversial new burden on anyone selling a property - called a 'home information pack' - designed to speed up sales, is set to be compulsory by 2006 and it could set you back at least £600. Think how many rolls of wallpaper that would buy.The government first talked about seller's packs in 2000 and despite opposition from homeowners, MPs and estate agents, they will press ahead with plans to make the packs a must for anyone selling their home (visit Yahoo's mortgage centre to compare 1000s of mortgages).
The idea is that the seller compiles vital information to hand to buyers when they view a property. The packs are expected to include the title documents, answers to standard pre-contract enquiries, replies to standard search enquiries, planning and building regulation consents, any warranties and guarantees for work carried out on a home, a draft sale contract and a report on the condition of the property.
This is designed to make the house buying process quicker, more transparent and consumer friendly. Ministers hope that the packs will cut the average time to sell a home from 12 to eight weeks. The government says that the packs will also help avoid gazumping - where your offer on a property is accepted and then the seller decides to take a higher offer. It is a problem which effects one in seven buyers in the UK. Although the pack will offer no guarantees, by making the transaction faster it could reduce the risk of a higher offer beating yours.
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The most interesting part of the pack for the buyer could be the survey. But as this does not include the valuation required by all lenders, you will still have to cough up another £80-£150 for one if you need a mortgage. Currently only 20% of buyers order a homebuyer's report which costs around £250 and is the equivalent of the survey in the seller's pack. Most homebuyers rely on their lender's valuation report, a more superficial assessment of the property.
Currently, if you buy a house you have to fork out for the cost of the survey and other important documents. The pack system effectively shifts the cost burden from the buyer to the seller. But although it may sound helpful in theory, the reality may not be so good.
When the pack was piloted in Bristol in 2001, accepted offers increased by 15%. But some estate agents involved in the pilot felt the time taken to assemble the pack - 11 working days on average - meant sellers missing out on prospective buyers, particularly in a fast-moving market. And these are not the only concerns. Even the Office of the Deputy Prime Minister Select Committee has said the packs should not be made compulsory. A number of MPs, estate agents, lawyers and lenders are worried at the potential cost these could add on to cash-strapped home sellers in poorer regions and may put people off selling their homes altogether.
However, the Consumers Association welcomes the move. "Once these packs are introduced, consumers will be able to make more informed decisions when deciding whether to make and offer on a property,' a spokesman said.
