Today sees the release of the OFT’s Report on the home buying and selling process and as expected this highlights the problems faced by consumers when it comes to engaging with our very antiquated process for selling and buying residential property. In particular it stresses the fact that until exchange of contracts has taken place either party to the transaction can pull out without being liable to the other party for losses incurred. It records the fact that about 20% of transactions fail between offer and exchange.
The OFT consumer research found that almost half of those contacted were of the view that their transaction was part of a chain of transactions. This is of importance, as a chain seems to be where there is the most evidence of wasted costs and time as well as stress to both seller and buyer.
The conclusion was that change is needed to ensure there is an earlier binding commitment between the parties to make it more difficult for either party to pull out. The OFT recogonise that bringing about this change may be difficult without the appetite for change from buyers and sellers as well as the property professionals. They add it is difficult to quantify the benefits of such change but are confident in their presumption that the benefits of this would be ‘substantial’
On the subject of home information packs the OFT was unable to form either a positive or negative view on their impact but were able to recognize the benefit behind the requirement of early disclosure and delivery of information to the prospective buyer and specifically noted that some buyers said they found the HIP information useful and that it had influenced their decisions. The OFT summarised their conclusion on the role of the HIP within the home buying and selling process by saying: '…so it could be argued that HIPs in their current form have a positive impact’.
Hopefully this will now mark the end of Grant Shapps’ contention that the HIP is not serving any useful purpose and has no role to play in helping and aiding the consumer. Surely a failure to take note of these findings must question (once again) the credibility of a man who may very well be our next housing minister.
The OFT Report must also signal to Grant Shapps that the consumer is not happy with the home buying and selling process and there is, as there has always been, a hunger for change. The HIP provides an excellent vehicle for bringing about further change that would definitely help to improve the certainty and transparency of transactions as well as speeding up transaction time. There is no doubt that it has already helped to reduce loss incurred on failed transactions.
The public should be asking Mr Shapps what further evidence does he require before he will begin to take this issue seriously. One can only go so far with political rhetoric based on unsubstantiated claims about the so-called evils of one small part of the overall home selling and buying process, that is the HIP.
The OFT consumer research found that almost half of those contacted were of the view that their transaction was part of a chain of transactions. This is of importance, as a chain seems to be where there is the most evidence of wasted costs and time as well as stress to both seller and buyer.
The conclusion was that change is needed to ensure there is an earlier binding commitment between the parties to make it more difficult for either party to pull out. The OFT recogonise that bringing about this change may be difficult without the appetite for change from buyers and sellers as well as the property professionals. They add it is difficult to quantify the benefits of such change but are confident in their presumption that the benefits of this would be ‘substantial’
On the subject of home information packs the OFT was unable to form either a positive or negative view on their impact but were able to recognize the benefit behind the requirement of early disclosure and delivery of information to the prospective buyer and specifically noted that some buyers said they found the HIP information useful and that it had influenced their decisions. The OFT summarised their conclusion on the role of the HIP within the home buying and selling process by saying: '…so it could be argued that HIPs in their current form have a positive impact’.
Hopefully this will now mark the end of Grant Shapps’ contention that the HIP is not serving any useful purpose and has no role to play in helping and aiding the consumer. Surely a failure to take note of these findings must question (once again) the credibility of a man who may very well be our next housing minister.
The OFT Report must also signal to Grant Shapps that the consumer is not happy with the home buying and selling process and there is, as there has always been, a hunger for change. The HIP provides an excellent vehicle for bringing about further change that would definitely help to improve the certainty and transparency of transactions as well as speeding up transaction time. There is no doubt that it has already helped to reduce loss incurred on failed transactions.
The public should be asking Mr Shapps what further evidence does he require before he will begin to take this issue seriously. One can only go so far with political rhetoric based on unsubstantiated claims about the so-called evils of one small part of the overall home selling and buying process, that is the HIP.
Do you think it is fair and reasonable that sellers should not be reimbursed for buying a HIP if they withdraw their property from the market?
ReplyDeleteAs the buyer benefits from HIPs couldn't a mechanism be established whereby the buyer reimburses the seller at completion through his/her conveyancer?
Such measures may reduce complaints from sellers about having to pay for HIPs.