Q : Home information packs ?

A : In June 2007 it will become compulsory for anyone in England and Wales who decides to sell a house or flat to put together a home information pack. The government has published draft regulations on the pack, setting out what it will include and how it will be put together. So what's behind the scheme and what will all this mean to you?

 

Q : What are the Benefits to First Time Buyers ?

A : First time buyers are the most vulnerable and least experienced participants in the home buying process.  They need hard reliable information to inform their decisions.  Home Information Packs will provide this
First time buyers will receive pack information ‘free’, thus reducing the cost of entry into home ownership

At present first time buyers waste £100s on searches and surveys only to find that the sale falls through (£140m wasted each year -NOP World research - Springmove).  This is an expense first time buyers are least able to afford.  It means they have to save up the money all over again before they can attempt to buy a home -  Home Information Packs will provide this information upfront

The Home Condition Report in the Pack will provide first time buyers with all the information they need about the condition of the home and its energy efficiency.  This will save first time buyers the cost of commissioning their own survey, and put an end to people buying their first home only to find out afterwards that there are expensive problems that they cannot afford to put right, or costly utility bills they hadn't planned for.

Q : What will HIPs deliver?

A : Transaction Improvements by reducing the abortive costs to consumers and the industry as well as reducing the number of failed transactions caused by survey or valuation inspection finding. 

Housing Stock Condition Improvements by a reduction in the incidence of unexpected repair bills and encouraging better maintenance of homes. 

Greater Consumer Choice by reducing the entry costs to first time buyers and creating a market of serious sellers

 

Q : What's wrong with the current system ?

A : Currently, one million pounds a day is wasted on failed transactions and buyers often spend hundreds of pounds on valuations, legal advice and searches on transactions that ultimately break down. By providing key information at the beginning of the process, Home Information Packs will prevent waste and significantly cut the number of sales that fall through

survey carried out when buying a home

Only between 20 and 30 per cent of buyers carry out a survey at all - that's 7 out of 10 people who do not

Nearly 30 per cent of transactions collapse after terms have been agreed

Over 40 per cent of failed transactions collapse because of an unfavourable survey or valuation inspection, so property condition is a major reason for failure

Only 2 per cent of buyers have a full structural