'Home Information Packs' could damage Haringey's housing market 10/07/06

Tottenham Conservatives have today warned that Government plans to introduce ‘Home Information Packs’ next June could undermine the local housing market and increase the cost of buying and selling a home. From 2007, anyone wanting to put their home on the market will have to pay up to £1,000 to produce a Pack, or else face a £200 fine. Yet new information in recent weeks has significantly undermined the case for this extra red tape:

• Fewer homes on the market: A new independent survey by economic experts, Oxford Economic Forecasting, has warned that they will cut the number of housing transactions, reduce labour mobility and depress consumer spending, potentially resulting in higher unemployment.
• Deficit on home risks: Packs will not be forced to include details on flood risk, natural subsidence, radon gas or land contamination. Such information is only voluntary, meaning many buyers will not trust the limited information in the Pack, and will still want to pay to commission further research.
• First time buyers will still need valuations: Buyers will still have to commission and pay for valuations, particularly if the Loan to Value ratio of the mortgage is over 80 per cent (e.g. for most first time buyers).

Justin Hinchcliffe, Chairman of Tottenham Conservatives, said:

“The case for these Packs is unravelling as attention is focused on the implications of this extensive new red tape. Moving home is one of the most stressful things anyone can do; I fear this new system will make it worse, not better. Rather than protecting consumers, these Sellers’ Packs threaten the stability of the housing market and will damage jobs and the economy across Haringey.

“The Packs’ failure to tell families whether the back gardens will be safe for their children or potential flood risks, delivers a serious blow to the credibility of these so-called ‘information’ packs. They should scrap the scheme rather than deliver expensive, deficient and dangerous information to potential homebuyers. Instead, the Government would do far better to focus on new measures to ensure more affordable homes to buy and rent.”

ENDS.