HIPs have now been in force for over three months and, not surprisingly, the initiative continues to maintain a high profile on the news agenda across both the trade and national media.
Over the last couple of weeks, a debate was sparked by the National Association of Estate Agents that suggested HIPs have had an 'adverse affect' on the housing market, claiming agents have seen the number of instructions decrease in the last few months and a high percentage of respondents to its survey have called for HIPs to be scrapped but Energy Performance Certificates (EPCs) applied to all homes.
Paul Broadhead, the Deputy Director General of the Association of Home Information Pack Providers (AHIPP) reacted to the reports suggesting that instead of making judgement on anecdotal feedback, the government and industry should consider hard facts first.
The Halifax House Price Index was referenced in Broadhead's response, confirming that although house prices fell 0.5% during the month of October; this is in fact the continuing downward trend that has been experienced since the end of 2006 and cannot be specifically linked to 1 August, when HIPs first came into force. At no point were HIPs referenced in the Index.
I believe it is fair to say that in the current market conditions, with the interest rates increasing during the course of the year on three separate occasions and the high consumer awareness of the credit crunch issues, there are many other factors triggering the downward trend in the number of properties being bought to market. To say it is solely HIPs does not ring true. Plus, the CLG also confirmed at a recent property expo that HIPs haven't had an effect on the market.
Why The Delay?
In addition, the anticipated date of the full HIPs roll-out continues to make the news - and rightly so. As a HIP technology provider and the technology partner to a majority of the industry's certification schemes, we are regularly speaking to Domestic Energy Assessors who are calling for the full roll-out to take place with immediate effect. Livelihoods are at risk if it doesn't taken place before the end of the year.
As we know, the Christmas period is typically a quieter time of the year for property sales and mortgage applications. However the commencement of HIPs across the board would at least see a potential increase in commercial opportunities for Domestic Energy Assessors, which would only gather further momentum as we move into the New Year.
I am continuing to actively encourage the industry to contact the CLG to find out when the phased roll-out will be concluded. Iain Wright, the Parliamentary Under Secretary of State at the Communities and Local Government kindly provided an email address during a recent conference welcoming feedback from the industry; [email protected]. I would therefore urge the industry to make contact in order to request more answers regarding the roll-out plans.
Turnaround Times and First Day Marketing
Due to the technologies powering the production of HIPs and with many Local Authorities now providing search data more quickly, packs can be turned around in a matter of days. We are finding that typically HIP providers using our tools are delivering completed HIPs in less than 10 days.
I believe technology will continue to play a major part in the provision of HIPs as speed to market will grow in importance when the first day marketing rules end on 31 December 2007. From the New Year onwards all properties bought to market must have four elements of a HIP when marketing starts - the sales statement, EPC, Land Registry title and Land Registry plan. Therefore, it will be paramount to be able to access the contents of HIPs as quickly as possible to enable consumers to market their homes without delay.
Mortgage brokers and intermediaries are in an ideal position to be able to offer clients a HIP at the very start of the process, when they visit to discuss their financial affairs. By initiating a pack at that point, by either using an online HIP tool or by working in partnership with local HIP providers, conveyancers and Domestic Energy Assessors, the pack could be ready by the time the client has agreed the financial plans and the search is made for an appropriate estate agent to market the property in question.
By offering an additional value-added HIP service to your clients - whether its managed in house using your own HIP software or you partner with local professionals, you can look to not only generate additional revenue opportunities but could help ensure you stay ahead of estate agents that may be looking to offer your customers advice on both HIPs and their financial affairs using an in-house mortgage advisory service.
