£1000 up Front to Sell Your Home!

1st July 2003

T. Wyn Jones

HOMEOWNERS will have to spend up to £1,000 creating a seller's pack 'logbook' for their house before putting it on the market under plans recently unveiled.

The proposals, published by Deputy Prime Minister John Prescott in his new Housing Bill triggered a hostile reaction from industry leaders and the public alike.

The pack I am informed must include a full structural survey, a guarantee for any recent work, details of fixtures and fittings and a local authority report on planning issues which by my brief estimation could cost in the region of £600 to £1,000.

The Government for the last six years has pushed the idea of seller's packs but despite a series of trials no one has been convinced that they are a good thing. The theory behind the move is that once a property goes on sale, the pack will speed up the selling process including conveyancing and remove the opportunity for gazumping. But in practice all manner of problems raise their ugly head. What's more banks and building societies have said they would not be prepared to rely on surveys carried out on behalf of sellers meaning that 2 surveys/valuations will be carried out on each property sale, a further cost increase.

For whatever reason the Government cannot see the major problems that these packs will encounter.

For example, information will become out of date very quickly, particularly if a property takes some time to sell. A planning application for a road or phone mast, which could wipe thousands off a property's value, might not even be highlighted. Of course a time limit can be set on the "life" of the report i.e. 3 months, but in a quieter housing market how many properties sell within 3 months of placing them on the market. If they don't then does the seller have to commission another report or take out an insurance policy?

At the moment, people get stressed and frustrated due to the time delay once the sale is agreed and the matters are placed in solicitors’ hands. Under the current proposal, the stress will come about as soon as the owners decide to place their house on the market but cannot do so - because they have to wait for a third party to produce the required information.

The general consensus is that the Government must carry out further research and come up with some answers to the problems raised as the introduction of the current proposed information/sellers packs would create more problems than they would solve.

Wyn Jones is a partner of McCartneys, Property Agents and operates from their Ludlow, Tenbury Wells & Cleobury Mortimer offices. For further information on Property Matters he can be contacted on Tel 01584 872153 or wyn@mccartneys.co.uk