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CML wary of seller's pack legislation

UK lenders were the latest to issue a warning against committing to legislation enforcing the use of seller's packs in the homebuying process this week, when the Director General, Michael Coogan, made his speech at the Council of Mortgage Lenders annual conference.

Although he praised the Government for taking the intiative in making improvements to the homebuying process, he argued that is was "premature to legislate to make sellers' information packs mandatory".

Themes of criticism that have been widely aired in recent weeks resurfaced again, with mention of the worryingly small trial size, the disproportionately high cost of the packs in areas of lower proprty value, and the enforced inclusion of a home condition report that may prove to be a fairly useless additional cost.

Mr Coogan said, "We do not believe the results of the Bristol pilot so far produce a convincing case that sellers' information packs work. Before pressing ahead with legislation, we would like to see a more robust study completed. The exercise in Bristol did not attract the 250 transactions that were planned. Only 60 sales by private individuals were completed in the results announced recently.

"If the move to sellers' information packs is not working convincingly in a buoyant market in Bristol - and when the packs are free of charge - what would happen in markets with low demand and low value properties, and when consumers have to pay for them? This has not be tested, so we do not know."

Nonetheless, it ios expected that labour will forge ahead with plans and give the packs some mention in the Queen's speech, which is to take place later today.