Posts Tagged ‘coalition’

HIPs removal will save £900m, says Pickles

July 19th, 2010

Eric Pickles, CLG secretary of state, has stated Suspending HIPs has boosted the housing market, while their eventual abolition will save the public just under £900m in the next ten years.

He went on to say there was “joy and happiness” among estate agents “throughout the land” at the demise of HIPs, that he planned to speed up the introduction of e-conveyancing, and that his Government is in favour of house sales, not bureaucracy.

However, he appeared to dodge answering a question on how many jobs had been lost in the HIP industry.

Here is the somewhat spirited question and answer session in the Commons last week.

Eric Pickles: The suspension of HIPs has given a much-needed boost to the housing market. Reports from the industry suggest that the number of new homes coming on to the market has increased by more than one third since HIPs were suspended. We have also estimated that abolishing HIPs could save consumers just short of £900m over the next ten years.

Jessica Lee (Erewash, Con): Estate agents in Erewash have conveyed to me their relief at the Home Information Pack scheme being abolished. Indeed, one estate agent has just described the scheme to me as being a complete barrier to people selling their homes. Can the Secretary of State inform the House whether that sentiment is shared by other people working in the housing sector across the country?

Eric Pickles: I am delighted to inform my Hon Friend that joy and happiness among estate agents is not confined to Erewash. Throughout the land, there is a general understanding that the drag anchor that HIPs were is no longer a constraint on the housing market.

Adam Holloway (Gravesham, Con): What further plans does the Secretary of State have to roll out that happiness and smooth the conveyancing process?

Eric Pickles: I am all for spreading as much joy and happiness, and indeed love, as I can, where’er I go. It was clear even from the trials that HIPs were going to be a real mess. We now need to look to the future and at what can be done to speed up transactions. I know that my right Hon Friend the Minister for Housing is looking at ways to speed up the introduction of e-conveyancing.

Alan Whitehead (Southampton, Lab): Why has the Secretary of State decided, alongside the abolition of HIPs, that energy performance certificates should no longer be required at the point when a house is initially viewed for purchase? Does he intend to downgrade the importance of those as well?

Eric Pickles: Under our green deal, energy certificates will perform a much more important role. They will be about bringing the price of energy down and ensuring that somebody with a house that has a good energy certificate does well, because we want to get houses on to the market. We will insist that the energy certificate be commissioned and in place before the sale takes place. It is about speeding things up: the Hon Gentleman is not familiar with that idea. We are in favour of house sales, not bureaucracy.

Christopher Leslie (Nottingham East, Lab): I am glad to hear that the Right Hon Gentleman thought deeply about the consequences of removing the Home Information Pack arrangement, but in his careful and calculated assessment, did he work out the number of people whose jobs might be affected? Clearly a number of people across the housing market professions have been gearing up to work in that area and will now no longer have that employment. How many people?

Eric Pickles: When the Hon Gentleman was in another job, during his brief inter-regnum between spells in this place, he used to advise me solidly to cut away waste and speed things up, and I have followed that advice. HIPs were just part of a service that was provided. We have just heard from Dr Whitehead about energy certificates, and a number of such services are available. It has to be said that it is not as though the removal of HIPs came as a shock. It appeared clearly in the manifestos of the Conservative Party and the Liberal Democrats, and in the Coalition Document.

Visit www.energywyse.com for the latest news & onveyancing advice

HIPs are to go!!!!!

May 14th, 2010

The Conservatives and Liberal Democrats have released a ‘Coalition Agreement’ document setting out the what has been reached between the two parties on a range of issues. In the document the following is buried towards the end under the Environment section pt 6 – a confirmation that Home Information Packs (HIPs) are to be scrapped and Energy Performance Certificates (EPCs) retained.

We have taken these screen shots from the BBC News website, but a full version of the document is available here

HIPs are one of the first casualties of the new coalition government and this is positive news for the housing market. Sellers see them as an annoyance, buyers don’t ask to see them and solicitors often refuse to rely on the information they contain. In an environment where property transactions are still far too low, any additional expense that makes sellers think twice about putting their homes on the market is not welcome. The introduction of HIPs was full of good intentions – designed to speed up the home-buying process and prevent people pulling out of purchases further down the line. However, the packs were ultimately diluted to the point where buyers and mortgage lenders did not have the vital information they needed – such as a structural survey – and they’ve been on borrowed time ever since.

The retention of Energy Performance Certificates is an environmentally positive move, but it is possibly more about complying with EU directives on reducing carbon emissions, clearly a positive move, than helping home buyers and sellers. The new government should now consider replacing HIPs with a simple pre-sales pack to include local searches and a draft contract for sale only.

We’d like to hear your thoughts on how this might effect the market, speed up the sales process or simply have no benefit at all.

Bye, Bye HIPs

May 13th, 2010

So, farewell Home Information Packs (HIPs) and for all you people who spent time and money training to become HIP inspectors, sorry.

Now the coalition government says the housing market can get along perfectly without HIP Packs. In a joint statement: “The parties agree to implement a full programme of measures to fulfil our ambitions for a low carbon and eco-friendly economy, including retention of energy performance certificates while scrapping HIPs“.

So into the recycling bin go HIPs, not that there will be many mourners among homebuyers, sellers.

Dominic Agace, chief executive of Winkworth estate agents, said: “Abolishing HIPs is likely to have a positive effect on property supply, particularly for speculative sellers who may have been deterred by having to pay up to £500 upfront for the pack.”

HIPs were introduced with the intention of negating the need for structural surveys by the inclusion in the new packs of Home Condition Reports.

When these Home Condition Reports were not made a mandatory feature of HIPs, the new packs became an expensive addition to conveyancing process – something which scarcely needs further complication and costs.

HIPs also failed in their aims to stop gazundering, when house prices were falling, or gazumping, when prices began to bounce back up. It’s difficult to see what they added, apart from temporary employment for thousands of former estate agents.

Nicholas Leeming, a director of the online estate agents Zoopla.co.uk, said: “The abolition of HIPs is a positive move for the housing market. Sellers see them as an annoyance, buyers don’t ask to see them and solicitors often refuse to rely on the information they contain.

The coalition say they are keeping energy performance certificates “to fulfil our ambitions for a low carbon and eco-friendly economy” but experts point out this part of HIPs is compulsory under European Union law.

The real question is, what will now happen to the 5000 or so workers within the Home Information Pack industry now going to do after spending £5000+ on training for this government scheme?

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