The government has finally shown its hand when it comes to the future of the much maligned HIPs.
The Pack roll out will be completed on 14 December 2007, when HIPs are extended to one and two-bedroomed properties.
With the introduction of four-bed HIPs being postponed from its initial roll out date of 1 June 2007 to that of 1 August 2007, swiftly followed by three-bed HIPs on 1 September, there has been much industry criticism over the way the 'fiasco' has been handled - with no date being timetabled for the final phase of the roll out.
Jeff Smith, chief executive of HIP Payment Services, has praised this latest governmental action.
He said: "With speculation rife and various inaccuracies about the impact of HIPs on the market being banded around by the Tories and other anti-HIP groups within the industry, it was essential that the government reaffirmed its commitment to packs and announced this final and vital implementation.
“With HIPs fully rolled out across the market they will finally be able to bring about the many benefits they were initially designed to achieve – a faster, more transparent process which will aid a more informed buying decision.”
Agreeing with Smith is Dominic Toller, director of marketing and new business at LMS: “The anti-HIP camp is going to have to face facts now - the packs are legitimately established within the housing market and mandatory for all properties before they are put up for sale.
"We urge RICS, The Law Society, the CML and other trade bodies to accept that HIPs are now a “done deal.” It is time for everyone in the industry to make this a workable initiative and help, rather than hinder the revolution in house buying that is long overdue."
He continued: “It is clear that HIPs have not had the negative impact on the market that many have claimed. The government itself has acknowledged that the downward trend in the number of properties brought to market is due to a number of factors and largely to wider macro-economic conditions. In fact, with so few buyers around, it is actually an advantage that the market is not flooded with speculative sellers at the moment.
“Search costs have already reduced as a consequence of HIPs and with searches now obtained before a sale is agreed, even the worst performing councils are not creating the stress and misery that they once were in the homebuying process.
“As we have said all along, it will take every part of the property chain to have a pack in order to see the real benefits and so we are thrilled that the government has finally made a decision. We hope that we will now start to see transaction times and cancellations dropping considerably and the real impact of HIPs can begin to be assessed.”
