§ Mr. DrewTo ask the Deputy Prime Minister if he will make a statement on progress on the consultation on the operation of home sellers' packs. [173867]
§ Keith HillWide-ranging consultation and extensive research by independent contractors have endorsed the benefits of home information packs in helping to make the home buying and selling process easier and more certain. The Office of the Deputy Prime Minister is working closely with industry and consumer stakeholders on the detail of the proposals in order to ensure a smooth introduction of mandatory home information packs from January 2007. Many home buyers and sellers will not have to wait until 2007 to benefit from home information packs. An increasing number of estate agents, surveyors and conveyancers are operating pack schemes on a voluntary basis.
§ Mr. DrewTo ask the Deputy Prime Minister what discussions he has had on the proposal by chartered surveyors to remove mandatory home condition reports from home sellers packs. [173868]
§ Keith HillNone. The Royal Institution of Chartered Surveyors (RICS) supports the Government's proposals for mandatory home information packs, including a home condition report. These reports will provide at the start of the transaction process reliable information about the condition of the property. This information is important to the decisions buyers and sellers need to make and, along with other components of home information pack, will make home buying and selling more transparent and more certain.
§ Mr. DrewTo ask the Deputy Prime Minister what research he has undertaken on possible legal and insurance claims against surveyors in advance of the introduction of home condition reports. [173869]
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§ Keith HillHome Inspectors preparing the home condition report will be required to have appropriate indemnity insurance to protect the home seller, a potential or actual buyer, and mortgage lender. With assistance from the Royal Institution of Chartered Surveyors, the Association of British Insurers and other industry stakeholder the Office of the Deputy Prime Minister is carrying out research into the insurance requirements. This includes an analysis by insurance specialists Willis Ltd. of historic claims made against surveyors for negligent surveys to determine the average number of successful and unsuccessful claims as well as the average sum paid and the cost of claims administration. We expect to publish an interim report very shortly.
§ Mr. DrewTo ask the Deputy Prime Minister what charge he estimates will be levied for home condition reports. [173870]
§ Keith HillThe home condition report will be a professional and objective report on the condition and energy efficiency of the property, which can be legally relied upon by sellers, buyers and mortgage lenders. It will be for the market to determine the price of home condition reports in practice and the point at which any charge is paid. Based on current prices, it is estimated that the report will cost about £300 on average (plus VAT). This estimate is based on a report on a three bedroom semi-detached house in a provincial town and can be compared with the typical costs of a building survey (£500 plus VAT) and mortgage lenders valuation report (£180).
§ Mr. DrewTo ask the Deputy Prime Minister what assessment he has made of the likely impact on property prices of the introduction of home sellers' packs. [173871]
§ Keith HillThe initial view of the Office of the Deputy Prime Minister is that the introduction of home information packs (HIPs) is unlikely to have a significant effect on property prices. This is supported by evidence from other countries that have introduced similar measures and by a survey carried out by the UK's largest estate agency group which suggested there would be little impact on the number of properties sold if HIPs were introduced. We will continue to keep this assessment under review during our discussions with stakeholders and consumer representatives on the final contents of the HIP.