Home information packs finally introduced

Wednesday, 8 August 2007 12:00 AM

A decade after they were first conceived a heavily diluted version of the home information pack (Hip) became law on August 1st 2007.

The date marked the beginning of a phased introduction of the scheme and at present Hips only apply to four bedroom houses. However, they will apply to three bedroom properties from September 1st 2007 and to all properties sold in England and Wales by January 1st 2008.

But what real difference have they made to the market at this early stage?

Housing minister Yvette Cooper argues the packs simplify the buying process, bringing together structural and environmental surveys, and stated: "It speeds the process up and makes it clearer."

However, there have been numerous problems with the introduction of the new scheme. The implementation was repeatedly delayed and there were repeated changes made to the mandatory requirements of the Hips.

This prompted fears that the policy was unenforceable, notably from the Royal Institution of Chartered Surveyors - there were too many loopholes, the laws were too convoluted and too complex.

"Home information packs threaten to bring the whole rule of law into disrepute, by opening the door to widespread avoidance and evasion," argued shadow housing minister Grant Shapps.

One problem with the implementation has been a lack of inspectors. The packs require an energy rating certificate, but not enough inspectors were qualified before June 1st, the original planned date for the launch of the policy.

According to research by PropertySecrets.net the problems were most acute in London, with only 170 to cover the whole capital, and there are now fears that estate agents will be unable to complete the packs because they are unable to find an inspector.

Tony Booth of PropertySecrets.net commented: "The regulations have been so diluted and so criticised that major organisations involved in the property industry are anticipating yet more problems in the future, particularly once the 'phased' introduction extends to all properties."

So Hips have got off a slow start. At this stage the impact has been minimal, but as the introduction continues many are waiting to see what the effects will be.

Tags:
• uk property news