OFT calls for government regulation in property search results |
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Thu, 22 Sep 2005 19:05
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LONDON - The Office of Fair Trading (OFT) has found that people are shelling out a lot of money to local authorities when they buy or sell properties. The competition watchdog said that councils and water firms in England and Wales should take concrete steps to make it easier for people to access information.
The OFT also urged the government to frame policies, which define the exact amount, that local authorities can levy on consumers. As the process stands now, interested buyers get their solicitors to 'research' a property that they are interested in buying. This process demands that the solicitor contact several organizations to collect the required information. One of the vital steps here is that the solicitor gets the local authority to compile a report on the said property. This is important because it tells the buyer about any future complications arising out of the property like building roads or any public utility services.
The OFT expressed concern that even though the property search market was growing at the rate of 1.5 million a year to £190 million, there was hardly any competition among local suppliers. Additionally, there was a surprisingly low level of awareness among consumers in England, Scotland and Wales, a fact that compounded the problem. The OFT said that it had found a wide degree of difference in the amount charged for these searches. Some areas charged as low as £55, while some local authority areas charged £269.
John Vickers, the OFT's chairman was emphatic that prospective buyers should be aware of anything that affected their property, "Property buyers must have all the relevant information that might affect their choice of property. Developing electronic provision and the introduction of the home information pack mean that there is an ideal opportunity to set the conditions for a dynamic market that serves consumers well in the future."
Come 2007, this process would be simplified for anyone who wishes to sell a home in England and Wales should produce a home information pack (Hip) which offers details about their property including search results.
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