UK Parliament / Open data

Housing Act 2004 (Commencement No. 8) (England and Wales) Order 2007

My Lords, I do not think that the House should be under any illusion but that we are facing an attempt by a new boy on the block to enter into the buying and selling of houses, which has been the almost exclusive preserve of a number of vested interests. When we talk of the people who have influence in this matter, we should not forget that estate agents, surveyors and others, whose cosy club has existed for a long time, feel threatened. They are right; they are being threatened. The Government are accused of doing something, when for years nothing was done directly to tackle a problem that has affected most people—including noble Lords, and I am certainly not an exception—involved in buying or selling a house. Therefore, from my point of view, the Government are to be congratulated on doing something. The criticism levelled at the Government is that their grand plan of three or four years ago has been watered down. However, they have listened, rejected, changed and consulted, and they have finally come to the conclusion that the only additional procedure in buying and selling a house should be the requirement for an energy performance report. The case for such a report, taking into account the issue of waste, has not been denied. The noble Baroness, Lady Hanham, said, without any caveat, that the report would cost £600, but the cost that I have been given is £300 to £400. She may be right, but so might I. I got my information from a source whose briefing, I am sure, will have reached the noble Baroness. Given that the average cost of buying a house these days is over £200,000, the additional cost of the report—shall we say £400?—is a flea bite. No one will willingly subject themselves to being bitten by a flea; however, if that is what it boils down to, and there is a service, it is a good thing. We talk glibly about global hostility to the matter among surveyors, estate agents and solicitors, but it is not necessarily so: some surveyors, estate agents and solicitors approve. The argument has rested on the unreadiness of the system to operate. I take the point made by the noble Baroness, Lady Hanham, about defining a four-bedroom house. Yes, there are clever people who are prepared to twist things and to commit subterfuge. I do not just mean estate agents or surveyors; some ordinary people will resort to it. If, for the extra cost, this piece of paper is produced, the 1,600 people who are ready now will shortly be increased to 2,000, which is an adequate number, I am told, to deal with that which the order seeks to do. The legislation is very limited compared to how it was. For the life of me I cannot see why the House is not prepared to give the Government the opportunity to put into practice that which noble Lords have always said they want; that is, to bring down the cost of selling and buying a house. Hitherto, these reports have had to be commissioned by the buyer; in future, they will have to be commissioned by the seller, so the cost to the first-time buyer will be substantially reduced. The noble Baroness, Lady Hanham, shakes her head. She may be able to quote evidence to show that the cost will not fall on the seller but on the buyer. We all know that people buying and selling houses are often in a chain. What you win on one you lose on the other, but as a result the costs will be marginal. The noble Lord, Lord Elystan-Morgan, made a powerful point about the cost of abortive sales that fall in early on. Hundreds of millions of pounds have been lost because of delay, missed opportunities and so on. The Government—I do not use the words ““congratulate”” or ““persistence””—are seized, as I am, of the need not just to do something, but to do something positive and helpful for people who want to reduce the cost of buying and selling their houses. I take with a pinch of salt the claim that the whole industry involved in buying and selling houses is opposed to the scheme. I know them well enough to believe that, once the scheme is operating—it has to start—a growing number in the industry will come to the view, ““Well, if there is some gravy to be lapped up, I may as well get a little bit of it””. The Minister has my support in her attempt to assist ordinary people to buy and sell their houses as equitably as possible.

About this proceeding contribution

Reference

694 c270-1 

Session

2006-07

Chamber / Committee

House of Lords chamber
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