Recent attempts by the Conservative opposition to re-open the debate on the forthcoming home information pack are seen by former RICS president Peter McKendrick as nothing more than opportunism from a party that usually claims to be all about giving consumers greater control over the decisions they face. McKendrick believes that despite support for the HIP from the Consumers Association and the Council of Mortgage Lenders (CML), a climate of misinformation has been created by various trade bodies seeking to retain their control over the homebuying process and deny consumer empowerment.
McKendrick said: “This is all incredible political opportunism by the Conservative Party at the expense of consumer empowerment. The Home Information Pack is the most important homebuying revolution in decades for UK consumers and will make significant and long-overdue advances in helping them make what is for many, the most important investment decision in their life. At the moment for example, over £200 billion worth of homes are bought blind every year by consumers who have no idea of their condition.”
McKendrick maintains that when HIPs go live next June, the system will herald a homebuying revolution that will empower consumers by providing them with valuable information currently not generally available when purchasing a home.
For example, at the moment less than 15 per cent of all house purchases involve a survey of condition, equivalent to over £200 billion worth of property. According to the English House Condition Survey produced by the Building Research Establishment, it would cost £48 billion to bring all the homes in England up to a decent standard and 26 per cent of homes, the majority in the owner-occupied sector, lack adequate thermal insulation.There is also a £28 billion backlog of costs for urgent repairs to homes.
McKendrick believes uder the HIP consumers will benefit from a new type of survey akin to a property health certificate: the Home Condition Report (HCR). The HCR will provide an independent and objective opinion on the condition of every residential property before it can be marketed. Using a 1- 2-3 rating system, the Home Condition Report will give a clear perspective on the condition of the property. Its conclusions will be reflected in the property’s price, enabling any prospective purchaser to make a sound decision on what is probably their most important investment in life: their home.
Contrary to reports that HIPs will lead to increased costs for consumers, McKendrick said the reality will be very different. To support the launch of the new system, Habitus believes that most HIP providers will be following its example of offering payment-on-completion. Indeed it believes that many estate agents and lenders will be mirroring the current regime of incentives on valuation and legal fees through a similar HIP incentive to their existing and potential customers. Mckendrick added the market wouldl very quickly realise the benefits of Home Information Pack to consumers and the conveyancing process, and facilitate its rapid take-up as was the case in Australia and Denmark when similar systems were introduced.
