What Now for Home Information Packs? |
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11th May 2010
Well, the HIP's Industry must be very worried. A coalition now exists with many differences where two differing parties have had to compromise on may issues. One thing they agree on is that Home Information Packs will go.
I have been told by many in the industry that this requires Primary Legislation. For the avoidance of doubt, it does not. Section 162 of the 2004 Housing Act provides
"The Secretary of State may make an order suspending (or later reviving) the operation of any duty imposed by sections 155 to 159."
Simply, the requirement to have a Home Information Pack in place before a property can be marketed may well be suspended at any time. I suspect, however, that the new Housing Minister will wait until after the Queens Speech, however it is certain that this flawed piece of legislation will soon be consigned to history.
Sadly, many people will lose out, including the Estate Agents who have been earning commissions from the provision of HIP's. My sympathy for them is limited as they had a legal duty to declare any such commission, often more than £100 just for emailing details of a new instruction. additionally, if they have relied upon this income, then they were very naive as they could reasonably foresee their demise.
HIP's companies will be redundant, many people may lose their jobs. The Labour Government were warned this would happen, but they failed to listen.
I sat on the HIP's Marketing Committee. Government love to report that they consult with industry, but sadly, they don't heed the advice they purport to seek. They imposed a flawed idea which was doomed to fail in the form promulgated and which benefited no-one. In doing so, they created a cottage industry in which many people invested and trained to provide this mandatory documentation. These people have every right to be angry when the rug is pulled from under them.
Nevertheless, we believe the demise of HIP's can only help the market and look forward to an announcement in the next few weeks.
