COMMUNITIES AND LOCAL
GOVERNMENT News Release (012) issued by The Government News Network
on 18 January 2008
New measures to
help deliver faster and cheaper property searches for homebuyers
were published today by Junior Housing Minister Iain Wright.
Councils and private search companies will be expected to work
together to improve the quality and speed of providing property
searches to homebuyers.
The Government today set out new guidance to improve the process
for consumers. Local authorities should now aim to provide access
to their data within one working day to private search companies.
In return, they will be able to recoup their costs by setting a
fair charge for improving access.
The changes to property search delivery are the latest step in
the Government's reforms to improve consumer experience of
the home buying and selling process.
Search provision is improving but there can still be wide
variation across the system - the best can provide it within hours
but the worst can take 2 weeks, whilst charges range from £40 to
£280. At present, private search companies are often unable to
access council data so they must take out insurance cover for any gaps.
Ensuring both providers have equal access to the data not only
removes the need for insurance cover, but mean the provider's
focus can be on giving consumers the best property search service
at lowest possible cost.
The changes follow recommendations made by the Office of Fair
Trading to improve competition between the public and private
sector in the delivery of property searches to consumers.
Junior Housing Minister Iain Wright said:
"Homebuying and selling can be a stressful experience and we
are committed to improving the system for people.
"By levelling the playing field for providers consumers will
be able to get important property information earlier in the home
buying process and see the costs coming down as a result."
Home Information Packs (HIPs) are already beginning to bring
benefits to consumers with average property search costs starting
to fall because of the new competition created by HIPs - 85 local
authorities have already reduced their charges by £30 on average.
Today's announcement will go further to ensure consumers get
a better deal.
HIPs particularly benefit first time buyers through a reduction
in their upfront costs by not having to pay for a pack, helping
them in getting a foot on the housing ladder.
Bridget Prentice, Minister responsible for local land charge
policy at the Ministry of Justice, added:
"Local land
charge searches are a very important part of the property search
process.
"We want to give local authorities the power to
set fees for a personal search of the local land charges register.
The idea would be to charge fees on a cost recovery basis. This
should help local authorities to improve the service they provide
but more importantly it will ensure consumers pay a fair price for
their search."
Notes to Editors
1. The two documents published today are:
* A good practice
guidance for local authorities and personal searchers which will
speed up access to local authority held property data ensuring
access to all property searches are provided within 1 working day
and no later than 3 working days. The good practice guidance is
available at http://www.communities.gov.uk/publications/housing/personalsearchguide
* A consultation document on future arrangements for LA
charges for property search services proposes a fair and
transparent charging regime which will improve competition,
stimulate innovation and ultimately reduce the costs of property
searches for the consumer. The full consultation document is
available at http://www.communities.gov.uk/publications/housing/lachargesearchconsult
2. In particular, the good practice access guidance is intended
to:
(i) Address the Office of Fair Trading recommendation that
local authorities make available all the unrefined information
they hold that is needed to compile a local search and that this
is done on terms that do not advantage an authority's own
local search activities over other searchers;
(ii) Promote
good practice and good working relations among local authority
staff and searchers;
(iii) Confirm that all the information
should be made available to searchers wanting to complete a local
search;
(iv) Assist local authorities in providing access for
searchers to both the LLCR and other records, while at the same
time allowing staff to manage and update those records;
(v)
Provide an overview of the legislation which applies to searches
and the duties of local authorities in facilitating these searches.
News Releases: http://www.communities.gov.uk/newsroom