Hips roll-out to be delayed further
Hips roll-out to be delayed further
Thursday, 08, May 2008 02:21
The government has announced the final roll-out of its controversial home information pack (Hip) scheme will be delayed further.
At present a Hip is required only upon completion of a sale, following the implementation of the scheme in three stages during 2007.
However, the government had planned to make the document compulsory for all properties on their first day on the market from June 1st.
But, in what can only be considered a further blow to the credibility of the scheme, this change has now been delayed "until the end of the year".
"Our evidence shows that it has been effective in doing this. However, we believe that a further period of the flexibility provided by the measure would be prudent," said housing minister Caroline Flint.
Hips were made compulsory for the sale of all properties on December 14th, following a gradual rollout throughout the year.
Only yesterday the Department for Communities and Local Government (CLG) was calling claims the date for their final expansion would be postponed mere "speculation".
"We have always said we will work with the industry on the technical implementation of Hips, but to talk about significant changes to the policy is wrong," said a CLG spokesperson on the issue yesterday.
It is now though the slowdown in the housing market - with both Nationwide and Halifax reporting prices have fallen year-on-year for the first time in over a decade in April - has prompted the government to err.
The delay has been welcomed by the industry, with Hips proving consistently unpopular.
"Rics is pleased to see the government is taking a pragmatic approach to enable people to get their property onto the market without having to wait for a Hip," said Rics spokesperson James Scott-Lee.
"In current market conditions it is essential to avoid anything which restricts a homeowner's ability to market their property when they choose."
Along with scrapping this change, the CLG has announced other key elements of the scheme are to be revamped a year after launch.
The new measures, outlined by the CLG include:
- Developing a new set of standards with industry on what consumers should expect from property professionals in the home buying and selling process.
- Further building on the quality of information in the packs
- Working with industry to ensure consumers are fully seeing and benefiting from the Hip, including the energy performance certificate (EPC), early in the process.
Some 700,000 Hips have been completed to date.
"We want to do more to improve the Hip and the home buying and selling process for consumers," added Ms Flint.
"Developing a new set of standards for industry is an important next step in further ensuring all consumers get the highest quality of service when buying or selling a home."
Chris O'Toole