Hamptons said with less than four months to go before the introduction of HIPs there is still no clarity about what is involved and how the scheme is to be implemented.
Mark Anderson, manging director – UK Residential, Hamptons International, said: “At the moment a vast improvement is needed. The implementation date is June 1 and no-one has any confidence in it. Absolutely nothing is clear. It is ridiculous that we are supposed to operate this scheme very shortly, but no-one actually knows what they’re doing."
HIPs have attracted controversy from the start and the government's announcement in July 2006 that it was going to withdraw the Home Condition Report element caused further uncertainty. The other parts of the pack including Energy Performance Certificates, searches and other legal documents including title documents and planning certificates will still be included.
Hamptons International has found that many prospective buyers and sellers it speaks to are concerned and confused about HIPs.
Ryan Doyle, sales manager at Hamptons International Chiswick branch, said: “Confused is putting it mildly. The majority of the clients and potential buyers/sellers I speak to are increasingly concerned as to how it will affect the market and what it will cost to them. They are worried that they will need to get surveys done immediately to try and sort out any issues that may affect the sale of their house. There is also a lack of understanding about who would be liable for the survey and how long that survey would be valid for.”
Others are confused about the Energy Performance Certificate (EPC), and what it will entail.
Anderson noted: “The EPC needs some clarification. If an energy report is carried out on a property and the sale falls through, will there still be an obligation on the owner to carry out the recommendations? And once the improvements have been made will the property then be bumped up into a higher tax bracket?”
