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As the proposed national dry-run of the government’s Home Information Packs gets ever closer, those opposed to the idea of the packs are making a renewed attempt to dissuade the public and the government that they won’t work.
But estate agents who attack HIPs are seriously misinformed and are in danger of misleading the public they claim to defend, according to the Association of Home Information Pack Providers (AHIPP).
The industry body for HIP providers says criticisms flung at HIPs by dissatisfied agents include the claim that the packs will cause a reduction in the number of properties coming onto the market as sellers will be deterred by the cost of providing pack.
Mike Ockenden, director general of AHIPP, claimed this was "arrant nonsense" saying: "It is extremely unlikely that any seller will be asked to pay up front for the cost of providing a pack. Just as lawyers who undertake conveyancing, HIP providers will subsidise the cost of putting the pack together until the house is sold. If a sale is aborted because of a death or loss of employment the costs will be covered by insurance schemes."
"To say the introduction of HIPS will put sellers off is frankly balderdash. Sellers traditionally sell for imperative reasons – the need for more (or less) space, because of divorce, death and relocation. These sellers will stand a far better chance of selling their house if they come complete with a pack including a Home Condition Report."
"Buyers will embrace the packs because it will save them the trouble of commissioning their own surveys. The whole process of house sales will be more transparent – and that has to be to the public’s benefit."
AHIPP also believes that if agents misinform the public now they will be in a very weak position by the time HIPs become a reality and a way of life just as they are in the USA, Denmark and parts of Australia.
"It is most disappointing that some agents – particularly those at the top end in London – are trying to obstruct the introduction of a product that will benefit the home buying and selling public," said Mr Ockenden. "What is amazing is that these agents cannot see that HIPS will not only benefit the consumer but will also provide them the opportunity to reduce their costs and improve their cash flows. They do rather appear to be the Luddites of the property industry!"
The Association of Home Information Pack Providers is trade body formed last year, representing a wide constituency of members in conveyancing, estate agency, search providers and HIP Providers. AHIPP is a member of the ODPM Central Stakeholder’s Committee who are charged with the implementation of the HIP programme.
The government has said HIPs will cut the number of sales that fall through and will speed up the home buying and selling system.
But estate agents say they think the system will slow down the market. Roger Milbourn, Director of MIAS Ltd said: "I believe that the implementation of HIPs will initially slow down the housing market, as in order to put a property up for sale, sellers will have more work to do and will need to find at least £600, in order to compile a pack. HIPs will impose extra costs and red tape in an already complex market."
The National Association of Estate Agents has been particularly vociferous in support of many of its members who see HIPs as an unnecessary burden on the housing market. According to the latest salvo from the NAEA, home owners who would never contemplate moving unless a certain property came onto the market may be stopped in their tracks once the new legislation comes in, because of the length of time it could take to put the HIP together. Some buyers would worry that by the time they had their own HIP in place, their dream buy would have already been sold, said the association.
The greatest genuine worry seems to be about the training of enough home inspectors in time for the legal start in 2007. Clearly apart from the supply of inspectors there will be a number of situations where there is disagreement between the report and the owner’s view. Also there are likely to be issues where sellers will decide to repair property before releasing the HIP. However, these may stop properties coming to the market, but they will also do just want the government wanted by nipping chain-stoppers in the bud.
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