• 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).
Mr Dunne said: "The case for these Packs is unravelling as attention is focused on the implications of this extensive new red tape. I discussed the introduction of HIPs with shadow Housing Minister Michael Gove MP this week, in light of this latest information. We remain concerned that far from speeding up transactions, the introduction of HIPs may reduce the supply of houses put on the market and have the reverse effect of that intended.
With the new HIPs regime going to be introduced next year, I welcome moves by innovative practitioners to streamline and improve on what the government is proposing, particularly if this will reduce transaction costs for buyers and sellers alike."
"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."
