It agrees that there is substantial evidence of market failure, and that a new regime is needed to improve consumers’ experience. The Board backs the drive to improve the quality of advice given to consumers when homes are bought and sold and to encourage transparency and fair competition. It also welcomes Sir Bryan’s endorsement of its own work in ensuring that registered HIP providers and search companies comply with high standards as laid out in their own Codes of Practice.
Richard Footitt, Chairman of the PCCB, said: “This is a timely wake up call to the industry as a whole, and many of Sir Bryan’s recommendations can and should be acted on without delay. The Board is very willing to co-operate with others in the industry to make progress on a new regulatory framework where it makes sense to do so.”
The Board takes a different view from Sir Bryan, however, on Government’s role in residential property transactions, and on voluntary HIPs.
Footitt went on to say: “We believe that there is a good public interest case for Government to intervene selectively in the home buying and selling process, and take the view that consumers would benefit from the restoration of HIPs to their original form with a property survey. The Board is not persuaded that voluntary HIPs would deliver what consumers are looking for.
“Legislation affecting the residential property market, including that on HIPs, should be reviewed when a new and comprehensive regulatory regime is in place and when it has demonstrated that real consumer benefits can be delivered. We will work with others who share that intent.”
