Thursday, July 13, 2006
The Cost of Housing
Nanny claims that she is trying to help more people afford homes of their own, she bleats daily about the housing market and the shortages of suitable property.
Yet in one fell swoop she will add another £800 to the cost of buying a home in a year's time.
Nanny's much derided Home Information Packs (HIPS) require the production of a plethora of expensive paperwork which, if a home is taken off the market for more than 28 days and later placed back on the market, will have to be updated at a cost to the seller of hundreds of pounds.
Despite these packs, buyers will still have to commission and pay for valuations, particularly if the Loan to Value ratio of the mortgage is over 80% (most first time buyers), or if the buyer has a poor credit rating.
Packs will still be required for low value homes or low demand areas, adding a significant additional cost to selling a home in such circumstances.
Another cost and another layer of bureaucracy. Some companies will of course do very well out of "helping" people prepare these packs.
Such is life in Nanny Britain.