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Press Release - Feb 08

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Eu Soil Directive

FEARS that the fragile housing and commercial markets are sitting on a potential time bomb have been raised by Philip Wilbourn who is warning that new European legislation will hit property owners in the pocket and add weeks to the already lengthy conveyancing process.

All property transactions will be more complex, costly and time-consuming after the introduction of an EU directive requiring a detailed soil analysis to be conducted on sites for sale to assess pollution levels. And this `unnecessary' move will have catastrophic results for buyers, vendors and businesses linked to the property sector as well as for the country's long-term economy.

The European Framework Directive for the Protection of Soil has yet to be adopted by EU member states but the initial proposal has been agreed by the European Parliament and could take effect this year. For house buyers, the initiative will be another financial burden following hot on the heels of the Government's controversial Home Information Packs. For the commercial sector, any downturn in property values is likely to affect business investment and could seriously compromise those areas working hard at regeneration.

"It is likely to cost about £900 to have a soil survey done by an accredited expert, assuming you can find one but, in the early stages, there won't be enough people trained to do them and there is a danger that cowboys will appear with a DIY kit to carry them out," he explained. "When samples are taken properly, they will have to be rigorously tested which will prolong the conveyancing process and any unsatisfactory reports will bring sales to a standstill.

"We're already experiencing a credit squeeze, the buy-to-let market is suffering and there is a shortage of first-time buyers. The commercial market has also slowed down significantly and this could lead to a reduction in land and property values," he predicted. "There are grave concerns within the industry that this legislation will have a very negative impact here, particularly as we have a much higher percentage of property ownership than other European countries."

While acknowledging the need to inform and reassure buyers about their investments, Mr Wilbourn believes that the current practice of conducting an Envirosearch report is sufficient for most sales. "Around 90 per cent of transactions already involve an Envirosearch which provides essential site history and environmental information to home buyers and vendors in mainland Britain," he said. "These are carried out for about £45 - hundreds of pounds cheaper that a soil analysis report. It will also be completely impractical in some cases, especially in the commercial field. Sheffield's Meadowhall shopping centre was for sale recently but how is it possible to take a soil sample there?

"Home buyers are already paying extra money for HIPs which don't actually serve the purpose for which they were intended and this Directive will put even more pressure on the market. Soil is a finite resource and some of it is undoubtedly at risk but there will be disastrous consequences when the legislation comes into force which it inevitably will do," he added.



For further information about this press release please contact Philip Wilbourn at Wilbourn Associates on 0114 243 5500 / 07973 797011.



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