Is Gordon Brown to Stall HIPs?

27th March 2007

Property industry representatives have been refused a meeting with Housing minister Yvette Cooper and have stepped up their campaign to have the introduction of Home Information Packs delayed. 

The group includes the National Association of Estate Agents, Royal Institution of Chartered Surveyors, Council of Mortgage Lenders and the Law Society.  They argue that the introduction of HIPs will disrupt the housing market and could have wide economic effects. 

Currently, all home owners will have to prepare a Home Information Pack from the 1st June.  The pack will include deeds and an Energy Performance Certificate.  These will be needed before they can legally market their property. 

“We support the Government in their policy objectives, to improve the home buying and selling process, and are prepared to work with them on this.  However, it is clear that there is considerably more work to be done if HIPs are to be a workable solution, and there is simply not enough time for the issues to be resolved before the 1st June.”  Said president Charles Smailes.  “In their current format HIPs will prove to be ineffective and vastly impractical”. 

Meanwhile the Royal Institution of Chartered Surveyors has spotted what it believes to be a change of policy on Energy Performance Certificates.  The budget report said these would give all homes an energy efficiency rating ‘at point of sale’.  Previous statements would have required an Energy Performance Certificate to be made available at the point of marketing for residential property, said RICS when welcoming the change. 

“RICS has campaigned for Energy Performance Certificates to be made available at the point of sale, rather than the point at which it is put on the market by the seller.  This represents a major u-turn in Government policy as they have previously reasserted their commitment to the provision of an EPC at the point of marketing.”

According to the conservative party the budget has “thrown the introduction of Home Information Packs (HIPs) into disarray”.

“Buried in the budget’s detail the Chancellor has declared that the Energy Performance Certificates – the remaining key stone of HIPs – no longer need to be provided when properties are marketed”.  Said Shadow Housing Minister Michael Gove “This announcement undermines the approach of Ruth Kelly’s department has been taking for the last twelve months.  The Chancellor also indicated that while HIPs could be introduced ‘later this year’ he gave no undertaking to stick to the 1st June launch date. 

“Conservatives have been pressing for a complete overall of the system, and following the Chancellor’s statement the Government plans are in disarray.  Thanks to Gordon Brown’s record of high handed interventions over the heads of Cabinet Ministers we are now left with a confused situation which is the last thing the housing market needs.  The truth is that HIPs won’t help people struggling to get on the housing ladder or make the process of buying a home any less stressful”.