In an announcement to the House of Commons, Kelly confirmed that HIPs would be introduced on four bedroom properties from 1 August. The decision has divided the industry.
Nick Salmon, head of Splinta, welcomed the move. He said: “This bungled policy should have been killed off long ago. We have consistently warned the government that its plans for HIPs were unworkable and our argument has been vindicated. Kelly can dress up this debacle in any way she sees fit but the fact is, she is an Empress with no clothes and HIPs, as the government envisaged them, will never see the light of day.”
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Duncan Samuel, managing director of Convex Conveyancing, commented: “This was a flawed piece of legislation and it remains to be seen whether HIPs will ever be implemented. With all the confusion and mistrust surrounding the future of HIPs, I wonder if there will ever be enough people willing to invest their future in attaining certification.”
Nici Audhlam-Gardiner, head of mortgages at Abbey, added: “Considering the lack of fully accredited home inspectors and the negative response from a large section of the industry, the government has made the right decision to delay the introduction of HIPs.”
However a number of commentators have expressed their disappointment at the decision.
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Richard Griffiths, chief executive at Network Data Holdings plc, believed the government had not thought about its next move. He explained: “The government over-reacted to the situation with the perceived shortage of assessors. The situation could have been handled a lot better. The government opted to have a delay, phase HIPs in and marketing from day one, but any one of the three moves would have helped alleviate the pressure. The government has tried to make sure that there are no further criticisms of the plans.”
Mike Ockenden, director general at the Association of Home Information Pack Providers, added: “This latest decision is at the cost of the consumer and the environment.
“Consumers will have to endure the existing, broken house buying and selling process for at least a further two months, costing them time, money and unnecessary stress.”
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Alan Dring, sales director at eConveyancer, also expressed his disappointment. He added: “What a farce. With just over a week to go, the government decides to put the brakes on HIPs for two months. Never again should a piece of legislation be allowed to be introduced in such a shambolic way. The government dithers and business is expected to pick up the bills. What are the accredited energy inspectors meant to do for the next three months? Will they be compensated for loss of income? I doubt it. What about HIPs providers who have collectively invested millions of pounds to hit the 1 June deadline, only to find their income projections are now about as useful as a government housing minister? Will they be compensated? I’m not holding my breath.”
Darren Beech, managing director of Promise Homepacks, said: “With the HIPs fiasco, and the subsequent disquieting news from the Estate Agent Ombudsman that complaints are on the rise, it’s about time those with a vested interest in the industry stopped listening to bureaucrats and took a hold of things themselves before the public completely loses faith in our industry. HIPs may not be everyone’s answer to the market’s problems, but they are a start and are certainly a lot better than the current lack of information.”
