Speaking at the launch of GMAC-RFC’s research into the economic impact of HIPs, representatives from both sides of the debate believed a more robust, paid for dry-run was needed to give a clearer picture of the effect HIPs would have on the market.
There was also concurrence between the three main political parties, and an admission from a Labour MP that a more detailed dry-run was the best way forward.
Clive Betts, Labour MP for Sheffield Attercliffe, said: “There are concerns in the industry over the mechanics of what is happening but the government is not going to change the actual legislation. However, it is in the interest of ministers to have a dry-run.”
However, a more robust dry-run would take time and there was a belief among many that it could jeopardise the June launch.
Michael Coogan, director-general of the Council of Mortgage Lenders (CML) insisted the organisation was still pro-HIPs but its attitude had become increasingly cautious over the past few months.
“We have asked the government to look into the impact of HIPs for some time and while we believe it will cost more, the market will adapt. However, there are still a lot of questions to be answered and the time until the June 2007 date is not long enough to answer them.”
Despite this, Paul Broadhead, deputy director-general of the Association of Home Information Pack Providers (AHIPPs), insisted the industry needed to start focusing on the fact that HIPs are going to happen
“The market shouldn’t still be talking about whether or not HIPs will happen. Instead it should be focusing on how to make them work. Lenders will need time to establish faith in the packs but ultimately, they will be useful.”
