Having been refused a meeting with housing minister
Yvette Cooper, property industry representatives have
stepped up their campaign to have introduction of home
information packs delayed.
The group, made up of the National Association of Estate
Agents, Royal Institution of Chartered Surveyors, Council
of Mortgage Lenders, and the Law Society, argue that
introduction of HIPs will disrupt the housing market
and could have wider economic repercussions.
As it stands, from 1 June all homeowners will have to
prepare a home information pack, including deeds and
an energy performance certificate, before they can legally
market their property.
‘We support the government in their policy objectives,
to improve the home buying and selling process, and are
prepared to work with them on this. However, it is clear
that there is considerably more work to be done if HIPs
are to be a workable solution, and there is simply not
enough time for the issues to be resolved before the
1 June’, said NAEA president Charles Smailes.
‘In their current format, HIPs will prove to be
ineffective and vastly impractical’.
Meanwhile
the Royal Institution of Chartered Surveyors has spotted
what it believes to be a change
of policy
on Energy Performance Certificates. The Budget Report
said these would give all homes an energy efficiency
rating ‘at the point of sale’. Previous statements
would have required an Energy Performance Certificate
to be made available at the point of marketing for residential
property, said RICS when welcoming the change.
’RICS has campaigned for Energy Performance Certificates
to be made available at the point of sale, rather than
the point at which it is put on the market by the seller.
This represents a major u-turn in Government policy as
they have previously reasserted their commitment to the
provision of an EPC at the point of marketing’.
According
to the Conservative Party the Budget has thrown introduction
of HIPs into ‘disarray’.
‘Buried in the Budget's detail the Chancellor
has declared that the Energy Performance Certificates
- the remaining keystone of HIPs - no longer need to
be provided when properties are marketed’, said
Shadow Housing Minister Michael Gove. ‘This announcement
undermines the approach Ruth Kelly's Department has been
taking for the last 12 months. The Chancellor also indicated
that while HIPs could be introduced 'later this year'
he gave no undertaking to stick to the 1 June launch
date.
‘Conservatives have been pressing for a complete
overhaul of the system, and following the Chancellor's
statement the Government's plans are in disarray. Thanks
to Gordon Brown's record of high handed interventions
over the heads of cabinet ministers we are now left with
a confused situation which is the last thing the housing
market needs. The truth is that HIPs won't help people
struggling to get on the housing ladder or make the process
of buying a home any less stressful’.
• The
Association of Home Information Pack Providers has
written to Ruth Kelly ‘offering
the strongest of reassurances that it is ready to deliver
HIPs effectively
and efficiently as of the 1 June’. The AHIPP letter,
which was signed by over 100 industry members and backed
by thousands of individuals, was sent to dispel in particular,
a number of myths raised in recent statements, said the
association.
Any
market impact due to the introduction of HIPs is likely
to be ‘minimal and short lived’,
it claimed.
‘There
is general agreement across the industry that there
may be a slight increase in
listings in May
this year as estate agents encourage homeowners to list
their properties before they are required to have a HIP
from the 1 June. This may generate a small overhang of
property listings, although this is unlikely to be substantial
due to the fall in properties coming on to market at
the present time.
‘The
suggestion that HIPs will deter sellers from entering
the market because of cost was deemed as "frankly
absurd". The overall cost of a single transaction
today runs to over £5,500, and a HIP with an EPC
will increase this by less than £200. In fact,
overall there is likely to be no cost increase to the
homeowner as HIPs will help to drive out the cost of
failed transactions from the market’.