The draft Housing Bill published on 31 March contains proposals requiring the preparation of a home information pack (sellers pack) for the sale of all residential properties. This is a summary of HBF's views that were submitted to the consultation.
HBF agrees with the objective set out by the Government in proposing the introduction of home information packs (HIPs) of improving the efficiency of the residential property market.
In addition to the consumer benefits that the Government foresees, if a more efficient residential property market can be achieved it would improve market signals for the developers of new housing and reduce problems associated with property chains.
A specific concern for house builders would be if the overall effect of the proposals were to shrink the size of the property market.
Other concerns include:
We support the proposed exemption of the initial sale of new homes from the requirement to provide a Home Condition Report (HCR) provided that the homes are registered with a warranty provider designated by the Secretary of State.
The transfer of ownership by a developer of a new home to another company prior to public marketing should not require the provision of a HCR if the company assuming ownership is a member of a designated housing warranty scheme.
The position on part-exchange transactions needs to be clarified.
There is a good case for a longer term exemption from the proposed legal requirement for a vendor to provide a HCR for the resale of a new home where a HCR does not provide greater consumer protection than that available under a designated housing warranty scheme.
The proposed Energy Report would include a section for recommending improvements to the home under inspection. While this would seem to be very relevant and useful for older homes, the HBF considers it would be inappropriate for new build as this could be achieved under Building Regulations.
The full version of the submission can be viewed on the members site.