Buy-to-let
The announcement from Yvette Cooper, housing minister came amid concerns that the introduction of the Packs could throw the housing market into chaos.
HIPs are to be introduced next July and are designed to speed up the homebuying process and reduce the risks of sales falling through. The government say they will cost home sellers about £700 each, but save buyers a total of £1m a day.
However, Ms Cooper announced in a statement from the Department for Communities and Local Government, that home sellers will no longer have to include the HRC or survey in the HIP. This means that when HIPs are introduced next year they will only include searches and energy performance information.
The government said that the introduction of the home condition report has been delayed on the basis of detailed consultations with the industry and the latest market and testing information. The HRC will be introduced on a market-led basis.
This announcement casts doubt on the readiness of the industry to implement the new system and there are concerns about the number of home inspectors who will be in place in time.
Ms Cooper said: Ministers are determined to avoid the risks to consumers and to the implementation of Energy Performance Certificates (EPCs) from a big bang introduction in June next year.
Further testing is needed on the costs and impacts of the HRCs and the government does not want to see early roll out of EPCs jeopardised by late amendments or delays to the rest of the scheme.
The Council of Mortgage Lenders (CML) supports the delay.
We are pleased that the government has recognised the considerable risks of a big bang approach to introducing HIPs with full home condition reports from 1 June 2007. We have always said that the timetable was challenging for such a complex set of changes. Consumer demand and not the government will now drive take-up on home condition reports.
But SAVA, an independent provider of training for home inspectors, is disappointed by the announcement. Its an unnecessary change that simply delays the consumer benefits of compulsory Home Condition Reports, whilst adding to the uncertainty of prospective home inspectors and the HIP industry, says Brian Scannell, managing director of SAVA.
He dismisses the idea that there would not be enough home inspectors in time for a mandatory roll out next summer as complete nonsense.
Which? reacted angrily to the governments announcement on HIPs by stating that it was withdrawing its support for the pack.
Nick Stace, campaigns and communications director at Which? said: The new Department for the Communities is not worthy of its title, it seems incapable of defending people in our communities making the biggest purchasing decision of their lives.
The homebuyer was looking to the government to hold firm in the face of criticism from the estate agents, instead the government has shown its house is made of straw.
Even estate agents are trusted more than politicians which is hardly surprising when politicians seem incapable of defending homebuyers. The new ‘half-HIP’ will be a useless but a very expensive waste of time.
