As members of the Conservative party outlined plans for a shake-up of the housing market in their speeches yesterday, the AHIPP did not take too kindly to the proposed scrapping of HIPs.
Home Information Packs have come in for a lot of criticism over the last six months in the lead up to, and indeed the aftermath of, their introduction into the property market.
Alongside upping the inheritance tax threshold to £1 million and the stamp duty threshold to £250,000, the Conservatives have also voiced a desire to do away with HIPs, something which Mike Ockenden director general of the AHIPP unsurprisingly feels very strongly about.
He said: “Abolishing HIPs to make it ‘easier and cheaper’ to buy homes as cited by the party, is the very reason why the packs have been introduced in the first place.
“Currently one in four transactions fail when purchasing a house, costing consumers £1m per day and it seems strange that the Conservatives wish to continue this sorry state of affairs for buyers and sellers. HIPs have been introduced to make the house buying process more transparent and quicker and this will benefit all buyers.
“It will particularly help first time buyers, a group of homebuyers that the Conservatives are supposed to be trying to help. HIPs mean these cash strapped buyers have all the information they need up front, paid for by the vendor. On the one hand Mr Cameron is trying to help first time buyers by removing the stamp duty burden, on the other he has stated his intention to disadvantage them by scrapping HIPs. It doesn’t seem to make sense.”
Jeff Smith, chief executive of HIP Payment Services is firmly behind Ockenden, asserting that the proposed measures are "irresponsible and impractical".
He said: "In reality, a Tory Government would be unable to bring in any such changes until the courts had heard all of the necessary applications for injunctions, inevitably dragging it through the courts for a number of years with anticipated costs easily exceeding £100 million in compensation alone.
“Scrapping HIPs will also endanger the occupations of thousands of people from energy assessors and Home Inspectors to Pack providers and all those running HIP related businesses. Should HIPs get scrapped then all these people will seek compensation and class actions against the Government.
“The Tories are keen to promote their plans for scrapping HIPs but I would like to hear how they plan to replace them. They cannot simply withdraw the Energy Performance Certificate (EPC) as this is in line with European regulations and people will still need title information and searches, surely they don’t plan to put these back to the end of the transaction and increase delays?
“Far from the chaotic shambles many commentators were predicting, the introduction of HIPs has been a great success, providing transparency and proving a key building block in the overhaul of our creaking housing market. With little prospect of the Tories regaining power, their farcical scenario is unlikely to unfold.”
