With the introduction of HIPs less than 12 months away, the CML has issued a warning that the Department for Communities and Local Government (DCLG) is not doing enough to educate the market, with questions remaining on exactly what the dry-run is testing.
The CML has called for a closer look into the workings of HIPs, and a spokesperson at the CML said there were many unanswered questions as to the benefits and working of HIPs. “We think there are currently unanswered questions that need to be dealt with to ensure the dry run process is well understood. In particular, what legal status does a voluntary HIP have and, therefore, what reliance can there be on it before the 2004 Act is fully in force? If there is any doubt about lenders’ ability to rely on Home Condition Reports (HCRs) produced before a statutory implementation date, then they will not rely on them and will continue with current practice.”
Paul Broadhead, deputy director-general at the Association of Home Information Pack Providers (AHIPP), admitted an extensive dry-run would provide greater market confidence. He said: “HIPs will go ahead on time. We would like to see an early roll-out, then if there is anything that needs to be ironed out there is the opportunity to go back before the launch. We will be looking at the dry-run very closely.”
Alan Dring, sales director at eConveyancer said: “It should not matter if HIPs have to be put back. What is necessary is that the proposition is right when it launches into the market.”
Jonathan Naylor, managing director at Rooftop, added: “The capital investment in HIPs is huge, but the market has seen the ineptitude of Self Investment Personal Pensions (SIPPS). The industry is hoping the same doesn’t happen with HIPs.”
