Home Information Pack Deadline Approaches

17th April 2007

The introduction of home information packs was intended by the Government to streamline the tortuous business of selling a house. But with the long-awaited scheme set to become mandatory from June 1, experts are predicting the process may instead become even more protracted.

Industry bodies have highlighted the problems individuals are likely to have in obtaining from authorities information required for the packs. This, coupled with continued uncertainty as to the cost of Hips, thought to be about 300 pounds, has caused many sellers to put their homes on the market early.

Questions have also been raised about the number of energy assessors trained to fill out the compulsory energy performance certificates, which are a big part of the much-revised scheme. A shortage could create major problems for sellers.

The government has estimated that 2,500 domestic energy assessors will be required to fill out the EPCs. So far only 1,000 have qualified, although the government insists 4,000 will be available by the roll-out date.

The Royal Institution of Chartered Surveyors and National Association of Estate Agents say they fear the housing market may contract once the packs are introduced.

"We said from the start that there would be an influx of properties as people woke up to the reality of Hips," said Peter Bolton King, NAEA chief executive.

"The normal housing market in June is fairly strong, but come June 1, I think we could see a 20 or 25 per cent reduction in properties put on the market."

James Scott-Lee of RICS said: "We don't know how long it will take the market to recover from the disturbance that Hips will bring and it will be the end of the year before we can quantify the damage done."

The Department for Communities and Local Government insists there is no evidence that Hips will have an impact on the housing market. Hips providers and supporters of the scheme say they fear the pre-emptive anxieties could become self-fulfilling prophecies.

Sue Anderson, at the Council for Mortgage Lenders, said: "The effects are all a big unknown. But what is evident is that some estate agents have already been promoting Hips as a reason to market houses early, and that could create market distortion."

Hips will put the onus of collecting information, such as evidence of title and leasehold documents, on to property sellers. The government says compiling the information earlier should reduce the likelihood of sales falling through.

The packs were originally to contain a home condition report, which would have provided a survey of the building, but this was made voluntary last year.

Since then the Government has highlighted the environmental aspect of the packs, which has been supported by industry experts. But these have questioned whether the scheme can still fulfil its promise of speeding the homebuying process.

"Hips won't stop sales falling through," said Mr Bolton King. "They won't speed up the process of buying a house and they are an administrative burden."