The only way the personal data impasse will subside is fair play

by Fiona Hoyle

Local authorities and personal search firms remain at loggerheads over personal data access. Until the Government intervenes, agents will have to wait for their Home Information Pack providers to deliver.

Many consider the search industry a major stumbling block in the way of Home Information Packs reaching their full potential. Speak to anyone in the sector and you will hear tales of recriminations and an industry split in two - but there are early signs of change.

HIPs rely on searches provided by two parties . personal search firms and local authorities. The problem stems from the unique position local authorities find themselves in. Not only do they compete to provide searches, they are also responsible for managing access to the data that the entire search industry relies on.

As reported in The Negotiator (13 June), a number of local councils are restricting access to data, fuelling accusations from personal search firms of a deliberate attempt to stifle competition. In response, local councils have pointed to allegedly poor levels of service within personal search firms.

While isolated instances of both claims are true, the mudslinging has served primarily to confuse agents and consumers and stalled any progress in the search market.

In the majority of cases, it could be argued that the delays personal search firms face in getting access to information simply derive from a shortfall in the investment needed to manage the volume of data that local authorities are responsible for. In 2001, local councils were responsible for managing and storing access to data for the UKfs 23.5 million properties. Fifteen years later, there has been a 24% rise to an estimated 29 million properties. Little wonder then, that there have been problems of supply not meeting demand.

Solutions

The obvious solution would be for the Government to increase local authority funding . unlikely given authorities have failed to compete with personal search firms on an even playing field.

Personal search firms have been able to undercut local authorities by reducing the time and cost of producing search information.

Local authorities have responded to this competition, with many attempting to speed up their service and/or by advertising campaigns. This, however, has proved controversial in terms of whether a local authority should spend taxpayers money on advertising that is geared to competing with tax-paying local businesses. Would the money not be better spent improving the data management services it has been tasked to provide?

While taxpayers are undoubtedly funding what is a commercial entity, albeit within the confines of a local authority, increased competition in the market is a good thing. And if we could move to a point where there is fair play between local authorities and personal searches in pitching for business, supported by an excellent data management system and resulting in a quicker and more valuable service for consumers, everyone would be happy.

Unfortunately, this utopia will take time to effect. The Government has hinted it will rely on the private search sector to fund the reforms via a new charging regime for access to data, with a knock-on effect on higher search fees.

Search firms are not, in principle, opposed to such reforms as long as they are legal, deliver efficient access to data, at a fair and reasonable price and with swift redress if councils abuse the new charging regime. The real concern is that the private sector will pay the new charges but that the service remains unchanged. Government will need to ensure this doesnft happen.

In return, local authorities should be required to separate their data collection functions from their local search services, with the latter competing for access to data on the same basis and at the same prices as the private sector. They should also charge VAT on their searches, as they are commercial activities.

Co-operation

But funding the reforms is only part of the solution. What is also needed is better co-operation between the two parties, which could be achieved if Sir Bryan Carsbergfs recommendation to legislate holders of search information is enforced. Another encouraging development was the first Local Search Summit, which was held last month, bringing together 150 local authorities and personal search firms.

Delegates believed that constructive communication could lead to a solution to some of the problems the industry faces. Ultimately, both parties want to see consumers being given all the information they need to inform their property move, in a timely and costeffective manner that can only make agentsf jobs easier in the long run.

• About Us
• Subscribe to the magazine
• Advertising
• Contact Us
• Terms and conditions
• Privacy Statement