Home information packs controversy rumbles on

Friday, 23 November 2007 12:00 AM

Opinion following yesterday's government announcement home information packs (Hips) will be rolled-out to cover all property sales in England and Wales has been decidedly mixed.

Housing minister, Yvette Cooper, yesterday informed the market all property sales, regardless of the number of bedrooms, would require a Hip from December 14th.

However, this has caused alarm in some sections of the market.

"We are extremely disappointed with the government's latest news," said Stewart Lilly, president at the National Association Estate Agents (NAEA).

"It seems hell-bent on pressing ahead with these ludicrous plans, which it has been warned time and time again are not the answer. Meanwhile, in giving such short notice for this final phase, the Department for Communities and Local Government (CLG) has demonstrated its total lack of respect for the industry and homeowners alike."

The changes will be detrimental to the weakest groups in the market, according to the organisation.

"Also today, the CLG highlighted the benefits it imagines there will be for first-time buyers," continued Mr Lilly.

"But what about first-time sellers? They are already faced with huge expenses as they trade up, most notably surrounding stamp duty. The cost of a Hip on top of this is an unfair and unnecessary extra.

"The other point to consider is if first-time sellers stay out of the market reducing the supply of more affordable properties available, then the situation will be even worse for first-time buyers than it is at the moment."

These views have been echoed by the Royal Institution of Chartered Surveyors (Rics) which has argued the number of speculative properties coming onto the market - in order to gauge their value - will decrease.

However, in contrast the Association of the Home Information Pack Providers (AHIPP), which has a vested interested in the success of the scheme, welcome the announcement.

"The final phase of the rollout will be gratefully received by our members who were beginning to feel the pressure following the government's recent delay. This vital step has now clearly reinforced government's commitment to the successful implementation of Hips and we look forward to seeing the positive impact," said Paul Broadhead, deputy director general, AHIPP.

"The independent research by Europe Economics dispels suggestions by Rics and the NAEA Hips are having a detrimental impact on the market place. Continued mis-information has contributed to the delay and has resulted in fewer energy efficiency measures being introduced by homeowners," he added.

The AHIPP also points out the so called 'first day marketing' element of the scheme's introduction - which means Hips have to be commissioned, but not complete, in order for a property to be offered for sale - remains in place for the time being.

"The extension of transitional arrangements around first day marketing is a sensible approach while the industry allows the policy to be bedded in, although this is only a temporary measure," continued Mr Broadhead.

"For Hips to realise full benefit, the information has to be made available to potential buyers at the beginning of the process."

Yet agents, who view the average £350 cost of a Hip as a barrier to sales, have attacked the government scheme.

Some 70 per cent of agents think Hips disrupt business, while 84 per cent want the legislation repealed, according to research from PropertyFinder.com.

"Estate agents across the country can see Hips are simply not delivering and want them abolished.

"Sellers don't know what they are and buyers ignore them. Now this discredited scheme is being extended to all properties, the confusion will only deepen," concluded Warren Bright, chief executive of PropertyFinder.com.

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