Speaking at the Council of Mortgage Lenders’ (CML) Annual Conference this week, Nigel Payne, managing director of The Mortgage Business (TMB), said early estimations indicated the government has not recruited even half of the 7,500 home inspectors it wants in place for HIPs which will be launched in June 2007. He also explained how the government has not factored in extra demand that may materialise for the packs.
He said: “The 7,500 home inspectors will not cater for buyers asking for additional HIPs. It has to be considered that sellers who have put their property on the market just before HIPs regulation may find they will be competing with sellers that do have the pack. Will estate agents then persuade these sellers to get HIPs as well? If so, 7,500 inspectors is not enough.”
“Some buyers may also want to get their own HIPs as they may not trust the ones from the seller. The packs will bring opportunities but we must make sure that when we get there, we create a stable market.”
Ian Turner, development director of First Title and chairman of the Home Information Pack Providers also speaking at the conference, said: “The certification of home inspectors should have been done a lot earlier. The government seems to have left it to the private investors in HIPs to sort it out.”
Paul Duckworth, managing director of xit2, said: “Nigel’s comments are very valid. But although you can do as many home condition reports on a property as you like, the lender will only take into account the report that has the unique reference number. So doing multiple reports is a bit of a waste of time.”
