Surveys paid for by vendors are out - now energy audits must be part of UK sellers' home information packs, writes Angela Pertusini
For a nation that prides itself on its independence of thought and deed - show us an international conflict and watch us wade in regardless of what other, sissier countries might advise - the British have a curious fondness for demanding the government jump in when things go awry.
Take the housing market. Now, we all know that the housing market moves forward because of a combination of human need and human greed but that doesn't stop us saying that the government should really Do Something About It.
Well, be careful what you wish for because back in the late 1990s, when New Labour was still listening, they decided that Something Had To Be Done about soaraway prices and came up with the idea of Home Information Packs (HIPs).
The proposal was that anyone selling a property would have to provide a pack which would contain, first and foremost, an independent survey of its condition, the thinking being that, if the buyer would be able to move the purchase along very quickly, there would be less opportunity for gazumping.
I was never convinced by the logic of this one but, as someone who has doled out more money than I care to think about for surveys on places I did not end up buying (as well as not spending when I should), I was not entirely against the scheme.
The middle-market press went beserk, however, blaming HIPs for everything from hosepipe bans to involvement in the Princess Diana death. Eventually, last year, an announcement came from Deputy Prime Minister John Prescott's office that the survey would no longer form a part of the pack and everyone expected the whole thing to be quietly shelved. Except it wasn't and from the beginning of June, HIPs will be compulsory for anyone selling a house in England and Wales - it's just the potentially useful bit has been replaced by an energy efficiency report. Why, in God's name, do they think anyone is the least bit interested in that? In Britain, having an energy inefficient home is a badge of honour, implying either a refined mind above such humdrum concerns as the exact setting of the thermostat. Condensation dripping from the sash windows and a draught straight off the Steppes are regarded as part of the charm of living in a period property by many. There is little consensus on how much a HIP will cost - about £600 seems a common guestimate - but everyone agrees that it is just one more reason why those who can will continue to stay put.
Perhaps the City bonuses have all been spent but, after the orgy of bidding wars at the start of the year, murmurings of unease are emerging. The latest is Mike Prew, property analyst at Lehman Brothers, who told investors that his forecast has moved from "positive" to "neutral" which could amount to "the end is nigh" in a market that is dependent upon confidence. Now, it's true that, because of ludicrous levels of unaffordability, people have been predicting a downturn or, as the estate agency fraternity politely term it, "a correction" for the past 10 years with only very occasional and momentary triumphs (such as the 2001 "cooling"?). This latest round of doom and gloom could be another of those periods of head-scratching but it's beginning to sound ominous. There has been a record number of profit warnings on the stock exchange in the past quarter, says Ernst & Young. If the bonuses aren't there at the end of 2007, who will fund those multi-zeroed purchases and paying those bloated rents? Add to that, the UK's horrifying levels of debt and rising repossessions, it doesn't seem as unlikely as it did 12 months ago. But then, neither did current asking prices.
