Supply concerns follow Hips launch

Following the implementation of Home Information Packs (Hips) for three-bedroom properties this Monday, the National Association of Estate Agents (NAEA) has expressed fears that the market for three-bedroom properties could now decline.

The UK’s leading professional body estate agency said that 63 per cent of its 10,000 members had seen a similar downturn in sales of four-bedroom properties after Hips were first introduced at the beginning of August.

The fall in sales, which was as large as 37 per cent in some regions, was attributed to homeowners staying away from the property market in order to avoid having to pay for a Hip.

“Our concerns have always been that the introduction of Hips would lead to a lack of supply following implementation,” said chief executive of the NAEA, Peter Bolton King.

“The most important thing for consumers and the market right now is that the government maintains the right for first day marketing of a property.”

NAEA members have also revealed that the average price being paid for Hips is currently around £350, and that most packs are excluding the voluntary home condition report, which is considered by many as the only useful part of the pack after the energy performance certificate.

With the implementation of Hips for three-bedroom homes, 60 per cent of the total housing stock is now covered by the government’s new rules.

Tags: Business Finance, total housing stock, GBP, downturn, right, lack

Disappointment over Hips back down

The decision to delay the introduction of Home Information Packs (Hips) into the home-selling process has left a number of industry figures disappointed.

Hips were due to be introduced on June 1st, with the aim of reducing costs for buyers and improving the green credentials of homes in the UK.

However, the government has now announced that the start date for Hips will be put back to August 1st, initially with only homes with four or more bedrooms being subject to them.

The announcement has caused anger among those who support Hips and some parties have been warning of negative consequences.

“This latest decision is at the cost of the consumer and the environment,” said Mike Ockenden, director general of the Association of Home Information Pack Providers (Ahipp).

He went on to blame the government back down on a recent legal challenge which as launched by the Royal Institute of Chartered Surveyors (Rics).

“It appears to have been Rics, through their call for a judicial review, which has ultimately derailed this vital house buying and selling reform, so soon before its planned implementation,” he continued.

“This is a serious let down and it is both the consumer and the environment which will now suffer as a result of these latest changes. Consumers will have to endure the existing, broken house buying and selling process for at least a further two months, costing them time, money and unnecessary stress.”

AA Legal Services has also expressed its disappointment with the decision, claiming that there will be “many losers” as a result, including mortgage holders.

Tags: packs, process, time money, introduction, disappointment, Providers

Rics takes legal action over Hips

Controversial government plans to introduce Home Information Packs (Hips) to the home-selling process have been dealt a big blow.

The Royal Institute of Chartered Surveyors (Rics) has stunned the property industry by launching a legal challenge against the government just days before Hips become law.

In an unprecedented move for the organisation, officials at Rics have announced that Judicial Review Proceedings have commenced against the Department for Communities and Local Government.

The move centres on the government’s perceived ‘failure to carry out proper consultation prior to implementing new legislation to bring in HIPs’ and is the first time in Rics’ 136-year history that it has launched a legal challenge against the government.

“Rics has not made the decision to commence Judicial Review proceedings lightly,” said Teresa Graham, chairman of Rics’ regulatory board.

“We have exhausted all the alternatives and greatly regret that we were left with no other option if we are to protect the public’s property interests.”

The move has been blasted by the Association of Home Information Pack Providers (Ahipp), which also moved to reassure those training to be employed in the Hips industry that the packs will still be introduced on June 1st.

“It is difficult to understand why Rics has taken this latest step against Hips when they are in the process of training both home inspectors and DEAs (domestic energy assessors) and in addition, play a prominent role within the Hips industry, as a certification scheme,” said Mike Ockenden, Ahipp’s director general.

“However, those who have trained or are currently training to become home inspectors or domestic energy assessors should not be concerned, this latest move will not impact on their future training or their future career progression within the Hips industry.”

An 11th-hour vote is due to take place today (May 16th) in the House of Commons over whether Hips should be introduced while the whole scheme has seemingly been dealt another blow.

Chancellor of the exchequer and prime-minister in waiting Gordon Brown has failed to publicly give his opinion on Hips, leading to further confusion as to whether they will be given the go-ahead.

Tags: home inspectors, ockenden, director general, RICS, Domestic energy assessor, Royal Institute of Chartered Surveyors, proper consultation, Law in the United Kingdom