A recent conference by the Association of Home Information Pack Providers (AHIPP) has moved to allay industry fears over the June launch of Home Information Packs (HIPs).
With the packs set to launch in less than 30 working days, much has been made of the changes to the initial pack plans, with attention now focused on the energy performance of the property rather than the state of it. Due to the Kyoto agreement, and a pledge by governments across the world to improve the environment, the eco system now plays a massive part in all governmental decisions.
find out more about this weeks industry news
As a result of the changes due to be implemented within the market, the AHIPP conference was an opportunity to assess attitudes towards the scheme and to help allay any fears remaining in the market. Mike Ockenden, director-general at AHIPP was pleased with the turnout. He said: “The conference provided an opportunity for estate agents and others in the industry to air concerns, ask questions and gain clarification from industry experts to ensure they are fully prepared for the 1 June deadline.”
He added: “Questions have shifted away from ‘what if’ to ‘how’, with the emphasis now focused on how to achieve successful implementation for the benefit of home buyers and sellers across England and Wales.”
While six months ago, many intermediaries still expected HIPs to be ditched, going the same way as Self Invested Personal Pensions, over recent months it has become clear that HIPs are to be a force in the market. Over the past three months AHIPP reported a 30 per cent rise membership numbers, confirming that a greater number of firms are finally realising the potential market impact of the packs.
catch up on the industry buzz
Improving the process
Despite pledges by the government and leading consumer and industry groups to improve the house buying and selling process, many brokers have suggested the best way to do this would be by introducing regulation to estate agents, while others have questioned the validity of HIPs and the Energy Performance Certificates (EPCs) attached to them. A Mortgage Introducer source, said: “There are estate agents who have also signed up to provide EPCs.
However, if they can do their own, they are unlikely to be sceptical of the property. This could be a major flaw of the system. Until estate agents are formally regulated, there will continue to be concerns over any business practices of estate agents. In any industry you are likely to get ‘bad apples’, but regulation has helped get rid of the ‘cowboys’ in the mortgage industry, and the same should be applied to estate agents.”
However Stephen Callaghan, director of energy-assessors.com, said: “The new EPC industry is strictly regulated by the government, offering the consumer the highest degree of confidence as hundreds of domestic energy assessors begin to carry out EPCs from 1 June.
find the latest house prices
“All assessors are required to pass an energy assessor qualification, using National Occupational Standards approved by the Qualifications and Curriculum Authority, and be accredited by one of the government approved certification schemes, of which five have now been approved. Accredited assessors must be fully qualified to undertake energy assessments; be ‘fit and proper’ persons, including having a compulsory Criminal Record Bureau check carried out prior to working as an assessor; and have professional indemnity insurance cover for all the work they carry out. They must also abide by stringent codes of conduct.” He also confirmed that the Communities for Local Government (CLG) would be responsible for monitoring accreditation schemes to ensure they complied with the industry legislation.
Consumer information
A lot has also been made of the government’s pledge to provide consumer information, a pledge many people have said the government has failed on. With HIPs set to launch in less than two months, many consumers are still unaware of the changes. While some commentators have suggested that May will see a massive housing boom, with people looking to sell their properties before the 1 June deadline, the fact that many consumers remain unaware of HIPs and their implications means that the housing market should be stable, although could expect a downturn later in the year as more consumers wake up to the impact of HIPs.
With this in mind, Housing Minister Yvette Cooper, admitted the house buying process was in need of reform. Speaking at the AHIPP conference, she said: “Change is needed for consumers, and it is important that we see innovation and competition to deliver buyers and sellers a better deal.
“HIPs are a good opportunity to improve competition, including on price, and get a better deal for consumers. The governments view is clear; consumers are the priority. They haven’t had a good enough deal in the past. We want them to get a better deal in future.”
find the latest industry jobs
It is evident that with rising house prices, and changing social and economic conditions, the house buying and selling process is becoming an increasingly time consuming, and taxing worry and is in need of some kind of reform to help those in need. However, only time will tell if HIPs are the answer.
