U-turn a costly house move

Jul 25 2006 By Evening Gazette

When it comes to the Government's Home Information pack, a big U-turn has taken place.

The controversial survey element of the packs is now no longer going to be compulsory.

The scheme will go ahead - containing local authority searches, title deeds, key legal documents and energy performance certificates, but people will only have to include Home Condition Reports on a voluntary basis.

I had misgivings about how things would work.

Human nature being what it is, I could imagine buyers not being confident in a Home Condition report in a pack being put together by the seller and that they would still want to have their own survey done.

So moving house would become a more costly business, with people buying a house having to stump up for two surveys - one for they house they were selling as part of the info pack and one for the house they wanted to buy.

But, that aside, the fact is the Government had said the home condition report would be compulsory and therefore a lot of firms had been gearing up for its introduction.

Now they are left counting the cost.

It is estimated firms, including mortgage lenders, estate agents and pack providers, have collectively spent £225m preparing for the introduction of the packs in June.

But now this money appears to have been wasted following the recent announcement by Minister for Housing and Planning Yvette Cooper that the survey element of the packs will not be compulsory.

The Council of Mortgage Lenders has said some lenders had "invested heavily" to deliver and use Home Condition Reports instead of a separate mortgage valuation survey from June next year.

An estimated 4,400 people have trained to become Home Inspectors, to carry out the reports, at a cost of £7,000 each.

I heard the boss of one small estate agency interviewed on the radio following the U-turn who had paid to have two staff trained - adding up to a hefty sum to have wasted.