Hips win vote
May 17, 2007 by admin
Filed under News, News-Mortgages
The introduction of Home Information Packs (Hips) has survived a last-ditch postponement attempt following a vote in the House of Commons.
Hips are due to become a mandatory part of the home-selling process from June 1st but opposition MPs, as well as a number of industry figures, oppose the packs in their current form.
Shadow foreign secretary William Hague, speaking during a debate in the Commons, described Hips as a “looming fiasco” and a “mistake”.
Tory Spokesman Michael Gove said that the introduction of Hips was “folly” and warned that the housing market will suffer as a result.
“They [Hips] will do nothing to take the strain out of home-buying and only add cost and complexity to the housing market,” he said.
“Ministers have botched this process from beginning to end. They have ploughed on regardless of the potential damage that they are doing to the housing market at an acutely delicate time.”
Hips are designed to reduce the number of home-selling transactions which collapse at the last minute, rid the process of gazumping and encourage homeowners to make their properties more energy efficient.
However, those who oppose their introduction say that they offer few benefits to consumers and, with each Hip costing between £400 and £600, add to the cost of selling a home.
Despite their victory in the House of Commons, by a majority of 72, Hips still face a potentially fatal vote in the House of Lords next week, as well as a legal challenge from the Royal Institute of Chartered Surveyors.
