- The Government has this week published a consultation paper on new consumer information to be included within Home Information Packs. If implemented, the proposals would introduce new mandatory information requirements, making HIPs more user friendly for buyers, with consumer facing rather than technical/legal information being provided.
- The Government's stated aim is to improve the quality and flow of information to the consumer. The document also refers to the need for property professionals to put forward all available information on properties to prospective buyers.
Property Information Questionnaire
- The consultation paper proposes simplifying and replacing the Home Use Form with a mandatory Property Information Questionnaire (PIQ). The PIQ should be capable of being compiled by the seller without professional input and will focus on the issues of greatest interest to potential buyers: how long has the seller owned the property; is it listed; council tax banding; utility providers; parking arrangements; fire, storm or flood damage; insurance claims; structural alterations or replacement doors/windows and permissions/guarantees ; treatment for dry/wet rot or damp; boundaries and access.
- The consultation focuses on whether there are other areas which should be covered, whether the PIQ should include basic leasehold information and the best way for the seller to access and complete the form eg download from Government website.
Leasehold Information
- In line with the Beardsall report recommendations, the Government has accepted that the planned leasehold information requirements as currently set out in the HIP regulations are unduly complicated and will prove difficult to implement as planned from January 2009. Beardsall had recommended that it was important for this information to be included within HIPs, but that it should be done in a simplified way.
- The Government is therefore proposing to introduce a new leasehold summary information form as a required document within the HIP. The new requirements will avoid sellers having to provide a large volume of information before the property is marketed.
- The form will be completed by the seller without professional input and will focus on the most important information for potential buyers: what is the ground rent and service charge, and who is it payable to; what is the buildings insurance premium; are building works planned for the property and what is the likely cost; does the lease allow or prevent any activity.
- The consultation asks whether this summary should form the permanent leasehold information requirements and whether the 28 day period for inclusion of lease documents be retained.
- The consultation period will run for 9 weeks, with views sought on how the Government intends to implement its plans for a PIQ and leasehold summary form. It is hoped legislation will take effect on 1 January 2009 when the leasehold temporary provisions expire.
Source: COPSO
To read the full consultation, click here
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