An Introduction To The Home Information Pack

Home Information Packs

The Home Information Pack is to become mandatory in 2007.

The Government were keen to introduce new legislation to implement new controls over the housing market. The aim of the legislation is to prevent gazumping and the high number of house sales property sales that fell through between the purchaser making an offer for the property and the exchange of contracts.

The aim of the Home Information Pack is to make the whole process of buying and selling property swifter by requiring full information to be provided to the potential purchaser when the property is first put onto the market.

It is also seen as an opportunity to convey additional information about the energy efficiency of the property and to make recommendations for improving this.

The Home Information Pack is proposed to include a Home Condition Report which will include a home energy report.

A pilot study has shown that Home Information Packs can reduce the time between making an offer and exchange from average of 62 days to 48 days.

A 50 percent cut in the number of the house sales falling through was seen. Of those taking part in the scheme over 80 percent of home buyers were satisfied with the new president.

Home buyers also valued the transparency and greater clarity offered by having access to the pack.

It is intended that the Home Information Pack will be a requirement for England and Wales only.

The Home Information Pack is expected to include the following:

  • Terms of sale.
  • Evidence of title.
  • Replies to standard preliminary inquiries made on behalf of buyers.
  • Copies of any planning, listed building and building regulations consents and approvals.
  • Copies of warranties and guarantees for new properties.
  • Replies to searches made of the Local Authority.
  • Environmental issues such as flood risk.
  • A Home Condition Report based on a professional survey of the condition of the property, including an energy efficiency assessment.

The Home Condition Report [H. C. R.] is the only part of the home improvement pack that is not already provided at some point during the process of buying and selling.

  • It will incur the extra cost to the seller.
  • A whole new body of Certified Home Inspectors will need to be recruited to carry out the work.
  • Existing surveyors will need to become qualified to be able to construct a Home Condition Report.
  • It is anticipated that the Home Improvement Pack will help sellers to decide on a realistic asking price for their property.
  • It will give the buyer the information to make an informed, serious offer for the property.
  • It is anticipated that it will speed up the home buying and selling process throughout England and Wales.
  • That it will save hundreds of millions of pounds in wasted costs that arise from filed housing transactions.
  • It will reduce the risk of Gazumping.
  • It will make energy efficiency of the property and important issue at the point of sale.

Home Improvement Packs are expected to cost in excess of £500. It is argued that this could push house prices up even further. It is also suggested that the costs will be disproportionate when used in the sale of cheaper properties. Also, it may well prove difficult to maintain the accuracy of the Home Improvement Packs.

It is estimated to that over and 7,500 inspectors will be required to provide the new service. At the moment this would mean the will be a huge shortage of inspectors to carry out the work efficiently as at present there are only 2,500 chartered surveyors and other professionals who undertake home surveys. There are also concerns that the information contained in the pack may become out of dates if a property remains on the market for some time. There is an argument that the putting together of The Home Information Pack may delay the vendor in putting the property on the market.

The new 'Home Inspectors' will be required to examine elements of the property which will include:

  • Chimney stack's, roofs, pipes and gutters, walls and open roof spaces and also to assess dampness with a moisture meter. The report will be based on a 'level 2 inspection', which will be approximately equivalent to the current 'Home Buyer Survey and Valuation' which is approved by the Royal Institute of Chartered Surveyors.
  • The Home Inspection Reports will not carry a valuation of the property with its. It is anticipated that the inspection will not be as detailed as a full structural survey but it will be more detailed than the existing basic mortgage valuation.
  • Apart from existing Chartered Surveyors, new companies will emerge offering their services to compile the Home Information Pack for vendors.
  • The introduction of Home Information Packs should not put vendors off from marketing their own homes without going through an estate agent.

More Home Information Packs Articles

The Home Information Pack - A Guide For Buyers
The Home Information Pack - A Guide For Buyers

The new Home Information Packs are likely to be introduced from 1 June 2007. This means that a whole range of Free Information will be available to Potential Buyers interested in a Property.

  • 5th April, 2007
The Home Information Pack - A Guide For Sellers
The Home Information Pack - A Guide For Sellers

From 1 June 2007 nearly all Homeowners in England and Wales will have to prepare a Home Information Pack before they can put their home up for sale.

  • 1st April, 2007
Latest News On The Proposed Home Information Pack - August 2006
Latest News On The Proposed Home Information Pack - August 2006

Find out the latest announced changes buy the UK Govenment in the implementation of its proposed Home Information Pack.

  • 2nd August, 2006

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