Sussex solicitors have condemned Government plans which will force home sellers to issue packs giving detailed information about their properties.

From June next year sellers will have to produce Home Information Packs (HIPs) for potential buyers in a move aimed at simplifying the system and reducing the number of aborted sales.

But the Sussex Law Society said HIPs would not benefit buyers any more than the current system and would involve buyers in unnecessary expense.

The group said the average cost to the seller of a pack will be £635 and in cities such as Brighton and Hove the figure could be considerably more.

HIPs will include documents such as searches and leases and, significantly, a home condition report meant to highlight potential problems with the property.

But Michael Scampton, who heads the residential property department of Brighton-based solicitors Dean Wilson Laing, said the packs could upset the property market and would mean fewer homes would be put up for sale.

He said: "The idea is to improve the house buying process but there is no evidence to suggest that it will do so. The extra costs will outweigh any possible benefits and the housing market could be seriously affected along with many associated businesses."

The Government has estimated consumers lose £350 million a year through failed deals on houses and flats. Lawyers say the extra cost of the packs will be more than £600 million.

They say sellers will no longer be able to market their homes immediately as there will be an enforced delay of up to two weeks while packs are prepared.

Mr Scampton said: "The packs will have to incorporate a home condition report, which will not include a valuation, and a local authority search. But most buyers will almost certainly require a valuation for mortgage purposes and their own survey.

"The local search will have a limited shelf life which will involve the seller in additional expense in updating if there is any delay in achieving a sale."

He added: "If the Government intends to improve the present system it should help the seller by abandoning the proposal and help the buyer by reducing the levels of stamp duty which have increased enormously since this Government assumed power."

The National Association of Estate Agents said tentative first time buyers could be "overstretched" by HIPs and this would impact on the property market.

But the Brighton and Hove Estate Agents' Association has broadly welcomed the proposals.

President Paul Bonnett said: "HIPs will give buyers much more confidence in the early stages and give sellers a clearer indication of what their property is worth. I think it's about time people who are selling houses grew up a bit. I have lost count of the number of times a client has airily told me they have a 99-year lease and further down the line, at a critical stage, you discover its just 78 years. That is incredibly frustrating and does not help the buyer or the seller."

Friday, May 19, 2006