Housing market reforms delayed for three years

Homebuyers will have to wait until 2003 for new measures to prevent gazumping to come into force, the Government announced.

Homebuyers will have to wait until 2003 for new measures to prevent gazumping to come into force, the Government announced.

The Housing Bill, published yesterday, will protect buyers from some of the costs of gazumping and make sellers foot more of the costs of selling a property, including the production of a "home-condition" survey. But the Government faced criticism from opposition MPs for waiting three years to bring into force the new homebuyer's pack and said the proposals would impose more costs on sellers.

The Bill imposes new duties on estate agents to produce a pack for prospective buyers, which includes the title deeds to the property and a "home condition" survey. Those who refuse to comply with the new home-buyer's scheme, including private sellers and estate agents, will face fines of up to £5,000.

The scheme is designed to help the 1.5 million people in England and Wales who buy and sell homes each year and to speed the process.

Ministers denied that their proposals would make selling a house more expensive.

"The idea that this is going to create huge additional costs for the public is nonsense and that needs to be knocked on the head right away," said Nick Raynsford, the Housing minister. "Those who criticise this scheme fail to take [into account] the massive abortive costs of failed transactions which many people now face when an agreed sale falls through."

The Housing Bill is expected to have its second reading before Christmas to ensure that it becomes law before the next general election.

Ministers also published plans yesterday to provide nurses, police officers and teachers with £250m of help to buy houses and flats in high-priced areas of the country, including London.

The starter-homes initiative will help about 10,000 "key workers" and will involve giving them interest-free loans and giving housing associations and local councils funds to build affordable homes for low-paid public sector staff.

Adrian Sanders, the Liberal Democrat housing spokesman, welcomed the move but said that environmental health officers and other key employees should also qualify for grants.

The Government also outlined limited reforms to the housing benefit system. Ministers plan to "raise standards of administration across the board" and to simplify the system of assessing housing benefit.

Ministers set out plans to ensure that homeless people receive priority in the queue for council houses. Homeless people from "an institutionalised background", including prison, local authority care and the armed forces, will also get priority in council houses.

Nigel Waterson, Conservative spokesman on housing and local government, condemned Government plans to issue new regulations under the Housing Act 1996 to allow such groups to jump the housing queue. He said: "Tony Blair promised to be tough on crime - yet Labour want to let convicted criminals jump the housing queue upon release.

"Why should a convicted burglar, car thief or rapist be given priority over council housing, when more and more hard-working families and children are stuck in bed and breakfast accommodation?"

The homeless charity Crisis said that the needs of the most entrenched were not being addressed by the Government.