§ Mr. HammondTo ask the Deputy Prime Minister by what percentage he estimates the number of failed 859W housing market transactions will fall as a consequence of the proposed introduction of homebuyers packs. [148302]
§ Yvette CooperResearch carried out on behalf of the Office of the Deputy Prime Minister has indicated that under the present home buying and selling process 28 per cent. of transactions fail after terms have been agreed, and that this costs consumers some £350 million each year in wasted expenditure.
It is not possible to estimate accurately at this time by how much this failure rate will reduce following the introduction of home information packs. In evidence to the Housing, Planning, Local Government and the Regions Committee an estate agent who has operated home information packs since 1996 said that in her agency the failure rate where homes are marketed with a pack is 3 per cent. compared to 26 per cent. where homes are marketed without a pack.
This reduction is due to information that could threaten or delay the transaction (e.g. a survey that both seller and buyer can rely on) being made available at the beginning of the process.