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 Hips timeline stirs a grumbling industry

 

Friday, March 17, 2006


Mainstream housing industry bodies, the Royal Institution of Chartered Surveyors and the National Association of Estate Agents both reacted with dismay yesterday as the government released its timetable for introduction of home information packs (Hips)

"Hips are a key part of a programme of reforms including electronic conveyancing, improved search processes and an estate agents redress system which will ensure consumers get a better deal when it comes to buying and selling a home," the Office of the Deputy Prime minister reiterated yesterday as it introduced its key milestones for introduction of the scheme.

But, sore from not being consulted on the time-scale of the introduction, RICS were quick to reach for the indigestion tablets. Spokesperson William Tew said: "RICS has consistently supported the principles of Hips, but has become increasingly concerned at the approach being taken by ODPM regarding implementation."

"We were not consulted on the timeline published today and having a timeline will not guarantee programme success."

"As a public interest body we are committed to working with government and other stakeholders to help provide a better home buying experience for consumers. Government and industry need to work together to deliver these reforms, but government has not yet provided the environment within which this can happen."

"The industry cannot be expected to develop a framework to qualify and regulate professionals to work in this field while the rules of the game are continually changing, particularly when these are emerging without proper consultation and agreement."

Although the 2007 introduction date has been known for some while, the timetable of events leading up to the introduction was only published yesterday.

Another industry player, NAEA, the body representing many estate agents across the country and one who has vociferously argued against Hips, also feels put out by the published timeline. A spokesperson said yesterday: "The introduction of the Hip is the biggest change in the property buying and selling process seen to date. The NAEA remains concerned that there are many unanswered questions."

"It is therefore critical that a robust and conclusive dry run is held that fully tests any risks which must be eliminated prior to unleashing this legislation on the public. With these concerns in mind, the timeline released by the minister today is extremely challenging and probably optimistic."

The government however, says it has developed the timeline in partnership with industry bodies and provides a clear path to implementation on 1 June 2007.

It argues the timeline will help to ensure that industry and the government remain on track to deliver a product that "makes a real difference to buying and selling a home."

"Pack providers, Home Inspector training providers and others involved in delivering the packs to consumers are key to the success of this programme, as are the Consumer organisations who have been calling for these reforms for years," the ODPM said.

Not all players in the housing market were as downbeat about the introduction.

Peter Williams, Council of Mortgage Lenders deputy director general, commented, "We are pleased that we now have a timetable setting out the key timings on the road to bringing in home information packs. This will help to ensure that there is a clear shared understanding between the ODPM and its industry partners in what needs to happen by when to enable Hips to go live on 1 June 2007."

"But no-one should under-estimate the scale of the task ahead. It is quite clear that, even when Hips go live, it will take some time for the market to gain experience and confidence in the new environment, and only then will its full benefits to consumers be realised," Mr Williams said.

Key points in the timeline include:

March 2006 - Government gave the go ahead for multiple certification schemes, meaning lower set up costs for industry and robust standards set by government to ensure quality home inspectors and a trusted, objective Home Condition Report (HCR) for consumers.

A number of organisations who are interested in becoming certification schemes have already come forward and the government is considering their proposals and over 3,000 people are already going through training for the Home Inspector qualification

April 2006 – Government launch a Hip publicity campaign to industry and details of a three-phased product launch and dry run will be published.

June 2006 - draft regulations are made setting out the detailed contents of Home Information Packs, rules governing the availability of packs, exceptions from the pack duties and arrangements for enforcement

June 2006 – June 2007 a three phase approach to product testing - that builds up to government and industry testing across all aspects of the process, involving estate agents, solicitors, pack providers, lenders and others who play a part in delivering home information packs to consumers, from ensuring that certifications schemes are up and running, so that home inspectors can register HCRs, to offering voluntary packs to consumers in advance of mandatory implementation. The summer of 2006 will also sees the launch of a series of geographical industry led trials.

September 2006 – Government approve the first certification schemes to oversee the work of home inspectors. The schemes will be set up and run by industry. Government will set the standards that the schemes will operate. In September the HCR Register contract will be agreed. A fully operational register will follow as soon as possible afterwards.

November 2006 - June 2007 – the product testing continues with phase two and three leading the programme into implementation on 1 June 2007. By now, lenders will be able to use information from the HCR report for valuation purposes, resulting in less on site valuation and costs savings for consumers.

April 2007 – public awareness publicity campaign is launched.

March 2007  - Review of the outcomes of the final phase of the product launch make final adjustments ready for going live 1 June 2007.

It is expected the detail of the timeline will be further developed in partnership with industry and be continuously updated.

 
 
     
     
 

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