Hips are an ‘imperfect’ solution, Lords warn
Lords have questioned the merits of home information packs (Hips), implying they could be a heavy-handed means of regulating the property market.
The House of Lords’ merits of statutory instruments committee said Hips could “imperfectly achieve” what they are intended to do, highlighting the “special attention” they have received from the industry and media.
Many estate agents have warned their introduction will deflate the property market and the National Association of Estate Agents has been especially vocal in raising its concerns.
“The comments on these proposals which we have received from interested parties show at best scepticism, and at worst hostility,” the report noted.
“The government has not been able to convince the principal stakeholders in the housing market that their proposals as they now stand are sensible or worthwhile, or are likely to be effective for their declared purposes; and they need to do more if the market is to respond positively to this intervention.”
Hips will become compulsory on June 1st, but in response to the Lords’ report, the Liberal Democrats urged the government to delay their introduction until a proper evaluation can be completed.
Lib Dem local government spokesman Andrew Stunell said: “Ministers’ failure to produce the evidence from the pilot studies is beginning to look like another dodgy dossier.
“Energy performance certificates (ERC) should, however, go ahead separately to give people buying new homes important information.
“The government could easily amend building regulations to ensure that the ERC come into effect this June.
“Armed with the energy efficient information, home-buyers will be able to save money on fuel bills and help tackle climate change.”
However, the Association of Hip Providers (AHIPP) insisted the Lords report was not a “balanced and fair review”, as peers had failed to consult certain environmental groups and industry players.
Mike Ockenden, AHIPP director general, said: “Hips trials have taken place across the UK over many months and they have provided evidence of improved efficiency in the market as a result . . . transaction failures fell eight per cent and the time between offer exchange was cut by an average of 11 days, as a result of Hips.”
From June 1st 2007, anyone offering a residential property for sale must provide a Hip for prospective buyers. All Hips must contain an ERC, which are set to become mandatory under EU legislation.
However, the government was accused of weakening Hips after it decided home condition reports would only be a voluntary component of the packs.
