Published on : Sat, 19 Nov 2005 09:16GMT
by : Andy Clarke

LONDON - The government today announced that the home information packs would be made compulsory in the buying and selling of any property by June 1, 2007. The packs will be available for a neat sum of £1,000.

However, the Council of Mortgage Lenders (CML) expressed its disappointment with the date and said that sellers would flood the market before this date in order to avoid paying up £1,000. The home information packs, dubbed HIP, include documents on the current condition of the home as well as a survey report.

"This will coincide with the housing market busy period, and could result in some unwelcome effects during the transition to the new regime," the CML said in a statement. The CML suggested that the period between October 2007 and January 2008 would be the best time to implement the scheme.

The Government responded by saying that the decision had been arrived at after weighing all the pros and cons. "June 1 2007 has been chosen because having listened to views from across the industry we are satisfied that this represents the best balance between the various interests. It provides the industry with the time needed to ensure that HIPs can be implemented smoothly and successfully and deliver real improvements for consumers," a spokeswoman for the Office of the Deputy Prime Minister said.

The Royal Institute of Chartered Surveyors said that although the date would ensure stability in the market, it would be tough since only a handful of people had begun training as home inspectors. "If we are to ensure that the reforms are implemented as smoothly and effectively as possible, we need to pull together to deliver sufficient numbers of suitably qualified, well-regulated and experienced practitioners who enjoy public confidence," RICS spokesman Jeremy Leaf said.