Department for Communities and local government (DCLG) response to CML research. We are pleased to hear that most lenders are supportive of Home Information Packs and that lenders believe HIPs will not have a significant effect on the number of transactions, despite recent alarmist reports to the contrary. Given that the Home Condition Reports are significantly more robust and extensive than the surveys lenders currently use for valuations, in practice there will be no excuse for additional physical surveys in the majority of cases.

We expect consumers and competitive pressures to push take up much faster that this, for example Nationwide and Principality have already said they expect to use Automated Valuation Models based on the Home Condition Report in 60 per cent of cases.

There is no good reason for others not to follow suit.

DCLG Response to Oxford Economic Forecasting Report This report reaches conclusions based on unfounded assumptions.

The idea that the introduction of Home Information Packs will increase unemployment by 93,000 is simply nonsense.

In Denmark, the number of transactions increased when the Packs were introduced, rather than fell in the year after the Packs were introduced.

The reality is that the level of sales depends on much wider issues in the housing market and wider economy that change over time, such as interest rates and earnings.

Facts.

There is considerable volatility in the market.

For example last year transactions fell by 17% per cent - unemployment did not increase as a result - it actually fell slightly.

- see facts below:.

This is based on:.

2004 transactions=1,227,830.

2005 transactions=1,021,352.

source: Land Registry.

2004 unemployment = 4.8% (1,426,000).

2005 unemployment = 4.7% (1,425,000).

source: ONS.

Your latest questions answered:.

Q:.

A seller can market their property indefinitely without a HIP, if it was already on the market before 1 June 2007.

A:.

No - this is not true - the regulations laid on 14 June state that all homes for sale will need to have a Home Information Pack by 1 November 2007 - irrespective of whether they put it on the market before or after 1 June 2007.

Q:.

Sellers can market a property for up to 14 days even if they don't have a HIP?.

A:.

No - sellers must have a complete Pack at time of marketing - unless a certain document cannot be obtained in time, in which case they may market the property with an incomplete Pack 14 days after the request for the document in question, so long as they can demonstrate they have made reasonable efforts to obtain the document.

The seller will need to add the document to the Pack as soon as it becomes available.

Q:.

Is it true that the Packs will cost up to £1,000 for a detached house and £800 for a semi-detached property?.

A:.

Estimates based on the current costs of the components of Home Information Packs suggests an average cost of around £600 - 700 plus VAT to compile.

Most of this cost is not new and is being met at present by both buyers and sellers.

Some organisations have said they would offer the Packs at reduced cost or even for free - market forces will apply.