LENDERS WANT HIPS SCHEDULE SHIFTED

[The Move Channel, 22 February 2007]:

The Council of Mortgage Lenders has called for the implementation of home information packs to be postponed until full evidence from research and area trials is available.

The Royal Institution of Chartered Surveyors has similarly called for a delay in the mandatory introductions of Hips, due to begin on the 1st June, in a reply to a government consultation.

The consultation has set out proposals to:

• Issue guidance to local authorities to speed up the provision of searches:
• provide a six-month transitional period after Hips are introduced during which properties can be marketed without searches as long as these have been commissioned; and
• explore measures to link energy performance certificates with incentives to encourage energy efficiency in the housing market.

The CML believes that the Hips timetable increasingly lacks credibility, with proposals for change still being made less than four months before full implementation, and without proper testing. 

The CML also wants time to explore ‘green’ mortgages, however there is no standard at the moment as to what ‘green’ means in a mortgage. 

CML head of policy Jackie Bennett commented: “No-one would dispute that the house-buying process is slow in the UK and could usefully be speeded up to benefit consumers but there is no clear evidence that Hips will solve the problems.”

"Incentives to make homes more energy-efficient are desirable, but again it is unproven whether including energy performance certificates within the home information pack will result in consumers taking energy-saving measures.”

Separately, the Association of Home Information Pack Providers has reported that feedback from agents in the initial six trial locations is that packs prove a useful selling tool.

Over 1,600 Hips have already been commissioned in the first six early roll out locations (Bath, Cambridge, Huddersfield, Newcastle, Northampton & Southampton) which commenced in November 2006

In the six initial, area trial locations Home Inspector registrations increased significantly and thousands more people have already registered for the Domestic Energy Assessors qualification to become home energy inspectors.

Mike Ockenden, director general of the association said: “Hips are being introduced to help improve the house buying and selling process for all involved – bringing more information about a property to the front of the process, allowing buyers to make more informed decisions and reducing the number of sales that fall through.”

“In the locations where packs are being rolled out already we have received a positive response from industry, with many agents taking the opportunity to ensure they are prepared for when packs become mandatory.”

“There is a lot of advice out there, with various courses and seminars being offered by our members as well as groups such as the NAEA and the Law Society - those who are still burying their heads in the sand need to take action now.”

“…those who are not ready are going to struggle and will find themselves falling behind the competition.”