Home Information Pack

01/08/05

Lucas Solicitors LLP are committed to making it easier for people buying and selling homes in England and Wales. We have started introducing the use of the home information pack, and can help provide you with the best quality service to compile the correct documents and information.

Introduction

The current home buying and selling process is slow, wasteful, stressful and causes far too much delay and failure. Home information packs are due to be introduced throughout England and Wales from the beginning of 2007 to tackle these problems.

They will make the home buying and selling process more transparent, more certain, consumer friendly and faster.

Benefits of the Home Information Pack

Home information packs will improve the home buying and selling process. They will:

• provide key information needed by home buyers and sellers at the start of the process, enabling people to be better prepared before they make decisions and negotiate terms
• supply information in an understandable, user friendly format
• reduce frustration and stress
• cut wasted costs by reducing the high rates of failed transactions

When They Will Be Used

Home information packs will apply to most residential property sales of homes marketed for owner occupation. A home information pack will not apply to:

• Non-residential property
• Mixed commercial and residential property
• Sales of tenanted properties
• Leases of less than 21 years

Key Documents

The contents of the home information pack will be set out in regulations. The Government is consulting with consumer representatives and key industry stakeholders on the final detail, but the pack is likely to contain the following documents and information:

• terms of sale
• evidence of title
• replies to standard searches
• planning consents, agreements and directions, and building control certificates
• seller's property information form
• warranties and guarantees
• a report on the physical condition of the property - a home condition report - including an energy efficiency assessment

and additionally for leasehold properties

• the lease
• recent service charge accounts and receipts
• current and planned future works
• insurance for the building and receipts for premiums
• regulations made by the landlord or management company
• memorandum and articles of the landlord or management company

Reducing Time

Home information packs will reduce transaction time. It currently takes about 8 weeks between acceptance of offer and exchange of contracts in England and Wales compared to an overseas average of 4 weeks. They should:

• shorten the period of uncertainty between offer acceptance and exchange of contracts
• reduce the risk of terms being renegotiated due to late disclosure of information
• help the parties commit more quickly to the transaction
• bring transaction time more into line with the overseas average

Reducing Transaction Failures and Costs

Home information packs will also cut the number of transaction failures and wasted costs.

The current process of buying and selling homes currently costs consumers and industry at least £1 million a day in wasted costs. Currently, more than one in four transactions fail (28%). Of these, 43% are because of survey or valuation findings (source: ODPM research).

Home information packs will substantially reduce the number of failed transactions because the information which usually causes transactions to slow down or fail will be known at the outset, not halfway through.

The average cost of producing a home information pack will be about £635, but this is not an additional cost. Most of the items in the pack already have to be provided at some stage under the present system. In many cases people will be able to defer these costs until later, as is usually the case with estate agents' fees now.

Increasing Consumer Satisfaction

Up to 9 out of 10 consumers are dissatisfied with the current system of buying and selling homes.

Home information packs should increase customer satisfaction because they will reduce:

• costs
• transaction failures
• the time it takes to buy and sell a home and
• the stress involved in the home buying and selling process

Timetable for the Home Information Pack

November 2004

Housing Act 2004 became law

Spring 2005

Consultation with stakeholders on detailed contents of the pack

Summer 2005

Regulations made regarding the contents of the home information pack and any exceptions to duties

Regulations made for the home condition report

At this stage industry have full details of the information that will be required for home information packs

Autumn 2005

Certification scheme for home inspectors approved in readiness to issue licenses early in 2006

Summer 2006

National voluntary 'dry run' of the home information pack

Early 2007

Introduction of the home information pack

Implementation of the Home Information Pack

Home information packs will not be introduced until everything is in place. To help ensure a smooth and successful implementation of the statutory scheme, the Government intends to facilitate a 'dry run' of the packs on a voluntary basis in England and Wales in 2006.

The Government will also discuss with industry and consumer representatives whether to make this 'dry run' compulsory in a selected area.

The 'dry run' of the home information pack scheme will:

• give industry the opportunity to operate the full home information pack scheme ahead of statutory introduction
• prepare the home buying and selling public for the new system
• allow Government and industry to identify and address any outstanding problems

 

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Lucas Solicitors LLP

At Lucas Solicitors LLP we specialize in Conveyancing matters, both residential and commercial, as well as providing our clients with expert services with regards Will, Probate and Trusts.

We have a friendly and supportive staff, including 2 senior partners. Our policy is to ensure we communicate with you in clear and easy to understand language, keeping the legal jargon to a minimum! If you have any comments we are always happy to listen.

Our clients come from diverse backgrounds, ranging from first time personal buyers through to large scale corporate property purchasers. Whatever you need, we will attend to your legal requirements in the same professional and informed manner, regardless of the scale of the work.

For further information please contact Lucas Solicitors LLP at:

Lucas Solicitors LLP.
48 Heath Road
Twickenham
Middlesex
TW1 4BY
T: 020 8892 8045
F: 020 8892 5777
E: info@lucassolicitors.com