Lords in Greater HIPs Scrutiny Call

20th June 2007

Parliament should be able to look at how the Government's controversial Home Information Packs (Hips) are working as they are phased in, a House of Lords committee has urged.

The row over Hips ignited last month when Communities Secretary Ruth Kelly did a last minute U-turn and announced that the original start date of June 1 for their introduction, would be delayed.

Her move followed a legal challenge to the scheme from the Royal Institution of Chartered Surveyors and a threat by the House of Lords to vote against the Hips Order.

Instead Ms Kelly said Hips will be introduced in three phases starting with sales of four-bedroom homes from August 1, then homes with three bedrooms and all other homes.

The packs, costing between £300 and £1,000 to compile, must contain information about the sale including title deeds and planning searches, plus an Energy Performance Certificate which will involve a home assessment by an inspector.

The Government believes Hips will slash the number of transactions which fall through late in the day while at the same time encouraging homeowners to be more energy efficient.

But critics say the packs will deliver few benefits to the consumer, add to the cost of selling a home and adversely affect the housing market.

There are also worries about the shortage of trained energy inspectors. This, say critics, will lead to more hold ups as vendors are unable to market their properties.

Now the House of Lords Merits Committee, in looking at the revised Hips, says it welcomes the Government's action in laying them in good time to allow Parliamentary scrutiny, before the first phase.

Because each implementation phase will be activated by a commencement order, an instrument that is not subject to Parliamentary scrutiny, the Committee has recommended that Parliament be kept informed and enabled to debate progress.

The committee has urged the Government to report to Parliament on experience gained in each phase, and to allow further opportunities for debate before extending Hip duties to other properties.

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