Clause 8 - Home condition reports
Homes Bill
12:45 pm
Mr Nigel Waterson (Eastbourne, Conservative)
I seek your indulgence, Mr. Gale. The four amendments are narrow in scope and I shall not take long to explain their virtues to the Committee. May I put down a marker about having a short stand part debate on the clause, given that the amendments do not touch on at least one aspect of it? Compared with the debate on clause 7, our debate on clause 8 has not ranged far, so I make my request in the desire to be helpful.
The amendments are narrowly drawn and designed to tighten the existing provisions. Amendment No. 37 is very simple and is designed to ensure that complaints are properly resolved to the satisfaction of all parties. It may seem obvious to include that in the Bill, but why not include the obvious? That is the entire purpose behind the amendment.
Amendment No. 11 was partly instigated—it is certainly supported—by our old friend the CML. It tackles the familiar problem of professional indemnity cover. Solicitors have an obligatory scheme and many take part in top-up schemes to ensure that they have adequate professional indemnity insurance cover should they make a mistake and face a claim made against them by a client. I assume that qualified surveyors have a similar scheme. Such schemes are often expensive, but they are a prerequisite for professional people and provide reassurance to the clients for whom they act.
The CML says:
Lenders will require Home Inspectors PI cover of at least £500,000 for each case they appraise.
It makes the fair point that, if lenders are expected to rely on the contents of the HCR, they
should be able to bring a claim under PI cover for negligence.
I perceive no argument against that.
The Minister may want to argue against setting a specific figure, but the amendment is designed to probe what figure he thinks would be appropriate. If he has his way, both buyers and lenders will rely on the reports. We support the notion that there should be adequate indemnity insurance. I am open to the argument that it is not sensible to put a firm figure on that in primary legislation, but the Minister will have reflected on that and I am sure that he agrees with the principle that those drawing up the reports are not, as he said, second-class citizens and should have sufficient back-up—
It being One o'clock, The Chairman adjourned the Committee without Question put, pursuant to the Standing Order.
Adjourned till this day at half-past Four o'clock.