Clause 7 - Contents of sellers' packs
Homes Bill
10:30 am
Mr Nick Raynsford (Minister of State, Department of the Environment, Transport and the Regions; Greenwich and Woolwich, Labour)
In case anyone believes that we are considering widespread exemptions that would cover a large number of properties, I should make it clear that I have previously indicated that around £10,000 might be the order of magnitude we have in mind. We are thinking about circumstances where the requirement to produce a seller's pack might be a deterrent to putting a property on the market. In most cases, we believe that the seller's pack will help to clarify the condition of the property and improve the workings of the market so, even in low-value areas, it might help to ensure that home owners are able to sell their properties. However, some hon. Members have highlighted the fear that, in some circumstances, the requirement to produce a seller's pack might act as a deterrent to putting a property on the market. We do not want that to happen so we have said that we will undertake detailed consultation before making any final decision.
We are sympathetic in principle and we are cautious about the application of exemptions because, as has been said, they could have the perverse effect of stigmatising property. Therefore, if we decide to propose any exemptions, they will be limited and tailored to specific circumstances rather than having a more general application. I cannot give any specific indications because we have undertaken to consult in detail with all the interested parties—professional bodies, local authorities and others, including right hon. and hon. Members—and it would be wrong for me to try to anticipate the outcome of those consultations. I have already said that we intend to apply an exemption to newly built properties that benefit from warranties provided by NHBC, Zurich or other insurance companies, and if we propose any other exemptions, they will be subject to full parliamentary scrutiny.
The issue of larger homes was raised by the hon. Member for Bath. He evoked a rather touching image of Knight Frank, a company whose image is not associated with smallholders coping on a pittance with impoverished farm land and small properties. That may be the image it is trying to cultivate, but this is really a lobby in favour of those with large properties—two acres of more—on which the partners of Knight Frank are no doubt delighted to receive instructions. The information required for a seller's pack is information that would always be obtained. People purchasing large and complicated properties will want all the information and will almost certainly commission a full structural survey rather than just relying on the house condition report. Nevertheless, that report is helpful because it will give useful information and say whether a full structural survey is necessary. An exemption would not be of any practical use or benefit to people in those circumstances. Therefore, the only case for an exemption is where a property is part of a commercial enterprise, for example, a farm. That is the answer to the hon. Gentleman's genuine concern for poor smallholders in financial difficulties, but the wider issue is not meritorious.