The government has already announced that it will be regulating all home inspectors – the Association of Home Information Pack Providers (AHIPP) is now taking this a step further to provide a voluntary code of practice for pack providers too. All Home Information Pack (HIP) providers subscribing to the code will be subject to stringent standards to ensure consumers purchasing a pack through an approved provider can place total confidence in the finished product.
All those involved in the provision of the pack will be invited to join and AHIPP’s aim is that no member of the public will use a HIP provider who does not have the HIP Code logo in their window and on their stationery.
It was suggested in the House of Commons that HIPs were a charter for cowboys and that strikes me as odd since the whole programme was designed to bring more transparency to the house buying process. The home inspector is destined to be a highly regulated individual – and yes, they still exist. Before now, the HIP provider has not been regulated but all that is about to change.
Common sense
At the outset, AHIPP recognised the need for stringent regulation and redress if the scheme was going to work. With our members, we have devised a HIP Code to which all reputable providers of HIPs are invited to join. Membership will not be confined to members of the association, however. This will be a voluntary Code of Practice, but it is surely common sense that no HIP provider will stay outside the Code if they want their services to be seen as a quality product by the consumer.
We wish to see a system of handling complaints instigated with a deadline of eight weeks, by which time we hope the problem will have been resolved in favour of all parties.
To be a member of the Code will not be free – depending on the size of the firms that wish to sign up, fees will be between £250-£4,000. This will cover the cost of devising the Code, which has been borne by AHIPP, as well as providing a final layer of insurance, which will kick in if the personal indemnity insurance cover (PI) of the home inspector/conveyancer/search company does not cover them adequately in the event of a dispute.
But will the AHIPP Code have any teeth? Yes, it will. While we have no power to ban an aberrant HIP provider, we do have the power to expel them from AHIPP and remove the logo, which is the Kitemark of integrity, and to publicise the fact. Just as the mortgage industry foresaw when the threat of heavy legislation threatened to engulf the trade, it did something about it and comprised its own set of regulations.
So what does the Code say?
It will set out minimum standards which HIP providers must meet and will include the HIP Code logo. The public can check whether a provider subscribes to the Code by contacting the Property Codes Compliance Board on propertycodes.org.uk, which will be going live shortly.
Signatories to the Code promise that they will:
- Provide HIPs promptly but inform relevant parties if and why a delay has occurred;
- Train staff properly and provide HIPs with thoroughness and diligence;
- Respond promptly to queries raised on a pack;
- Handle complaints speedily and fairly;
- Maintain appropriate indemnity insurance cover;
- Act with integrity and ensure all HIPs services comply with relevant laws, regulations and industry standards;
- Marketing: all literature, terms, conditions and adverts are clear, fair, reasonable, accurate and not misleading;
- Charges: these will be made apparent at the start of the transaction;
- If additional costs are payable, these will be advised and indication of cost provided;
- Queries: prompt action will be taken on a HIP in writing, via the phone or e-mail as appropriate;
- There will be a formal written complaints procedure to enable speedy and fair resolutions to disputes;
- Complaints will be acknowledged within five working days;
- Complaints will normally be dealt with within four weeks of their receipt. Any delays will be explained;
- With permission we will liaise with counselling organisations;
- If unsatisfied, complaints will be referred to the Independent Property Codes Adjudication Scheme;
Insurance
The scheme will maintain an adequate and appropriate insurance to protect members against negligence and loss in the event of the failure to carry out the duties set our in this code.
Monitoring and Compliance
A Code compliance officer will be on hand and our internal auditing procedures will monitor compliance with the Code. As I have said the Code will be monitored by the Property Codes Compliance Board which is an independent body funded by registered firms and the Board will have representatives from lenders, conveyancers, HIP providers, search organisations and has consumer interests at heart.
The consumer will be able to place total confidence in any HIP purchased through providers adhering to the code. The government will be regulating home inspectors to ensure that they carry out their role to the highest standard and all consumers purchasing a HIP with the HIP Code logo can be confident that their provider is also being stringently regulated. The packs will carry PI insurance and any problems that may arise will be picked up immediately and resolved quickly, with minimum disruption and cost to the consumer
It is vital that the providers of information packs and all those professional people involved in compiling them are seen as trustworthy people with impeccable integrity. This Code of Practice is the first step to ensure that the whole provision of HIPs are seen to be regulated and above board. There has been scepticism that HIPs will happen but I am here to tell you they will.
