Summer trials for home information packs

Friday, 17 March 2006 12:00 AM

The launch of home information packs (HIPs) moved a step closer this week with the publication of a timeline leading up to their becoming mandatory in June 2007.

The timeline reveals plans for a three-phase launch with testing involving estate agents, solicitors, pack providers and lenders.

Under the plans, announced by the government, a series of trials will take place in set parts of the country during the summer, and sellers will be offered packs on a voluntary basis ahead of mandatory implementation.

The detailed contents of the packs and rules governing their availability will be revealed in June this year, while in September the government will approve the first certification schemes to oversee the work of home inspectors, who are responsible for providing home condition reports.

From November 2006 lenders will be able to use information from home condition reports for valuation purposes.

A public awareness campaign will then be launched in April 2007 to ensure the public is fully aware of their introduction.

Paul Broadhead, deputy director general of the Association of Home Information Pack Providers said: "There should be no doubt now with the publication of this timetable that home information packs (HIPs) are going ahead. We now have a realistic and achievable programme setting out the key milestones en route to June 2007 and a better housing market for all.

"Many of the initiatives are already in place to facilitate this timetable and we are confident that these targets can and will be met.

"However it is now time for those who have been so busy speaking out against HIPs with misguided negativity to put their energies into supporting the reforms and improving the house buying and selling process."

The Council of Mortgage Lenders (CML), however, stressed that the home condition report was not a substitute for lender valuations and consumers would therefore still have to pay for lender valuations when home information packs are launched.

"It is quite clear that, even when HIPs go live, it will take some time for the market to gain experience and confidence in the new environment, and only then will its full benefits to consumers be realised," said CML deputy director general Peter Williams.

The National Association of Estate Agents (NAEA), which has been one of the biggest critics of home information packs, said in a statement: "The introduction of the HIP is the biggest change in the property buying and selling process seen to date.

"The NAEA remains concerned that there are many unanswered questions. It is therefore critical that a robust and conclusive dry run is held that fully tests any risks which must be eliminated prior to unleashing this legislation on the public.

"With these concerns in mind, the timeline released by the minister today is extremely challenging and probably optimistic."

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