Since the government announced its plans to introduce Home Information Packs (HIPs) in the March 2003 budget, the NAEA has been a fierce critic, taking issue in particular with the cost and the man-hours needed to prepare HIPs.
Chairman of the briefing, Lord Corbett, commented that in his 25 years it was unprecedented for an industry to come together in such a manner, raising so many common issues of a potentially problematic nature. The bill is expected to arrive on the statute books by 2006.
The following excerpts outline some of the industry views aired during the briefing.
Peter Bolton King, chief executive of the NAEA, commented: “It is a serious concern that 25 per cent of prospective sellers might not put their homes on the market if they had to pay money upfront to compile this pack. It is the homeowners’ historic right to decide when to buy or sell and these proposals will erode that freedom.
Alex Solomon, spokesperson for the Council of Mortgage Lenders (CML) reportedly said that many aspects of the proposed legislation remain unresolved, including putting insurance in place for Home Inspectors, the shelf life of the HIPs and the number of searches needed on a property. He also expressed concern that enough trained Home Inspectors would not be found by 2007.
Jeremy Leaf, spokesman for the Royal Institute of Chartered Surveyors (RICS), reportedly said that HIPs would not prevent delays due to chains. He said it was essential that the bulk of information should be available online prior to the implementation of the Housing Bill. More responsibility would be placed on estate agents in explaining the contents of Home Condition Reports and they will need to have a minimum standard of competency in handling this.
Melfyn Williams, president of the NAEA, added: “I was encouraged that senior representatives of the House of Lords could clearly see the many practical difficulties that need to be tackled before HIPs can become workable and I trust that these issues will be addressed as the Bill progresses through its legislative stages. ”
Emma Harrison, spokesperson for the Consumers’ Association (CA), was the one speaker who gave unequivocal support to HIPs because they would result in fewer failed transactions. She said that a survey carried out by the CA showed that 68 per cent thought HIPs were a good thing. However, the survey also revealed that a quarter of people would be put off selling because of the pack.
