The wait over the fate of HIPs goes on! |
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19th May 2010
As the waiting game drags on as to exactly when the axe will fall on Home Information Packs, AHIPP is understood to have held an emergency meeting yesterday.
A spokeswoman at Communities and Local Government had earlier told EAT that the minister has instructed that the abolition has “top and urgent priority”. This morning, home-moving service Reallymoving said that the lack of action so far on HIPs was having an immediate and damaging effect on the market. Rosemary Rogers said: "We are receiving dozens of inquiries from our HIP clients on an hourly basis, but we are all in the dark. The Government must issue clear guidelines as soon as possible, to prevent a full-blown crisis."
The AHIPP meeting, say sources, were told that it is believed that HIPs will be suspended within seven days. It is understood that attendees were asked to contribute to a £100,000 fighting fund – with a law firm standing by to take the case – to overturn the suspension.
It is believed the case would be fought on the grounds that whilst the Government would suspend HIPs because they are not working, AHIPP would contend otherwise.
Separately, NAEA chief executive Peter Bolton King said of the likely suspension and abolition: “It is essential that they sort this out quickly. Already there is news of sellers holding off coming to the market.
“I also suspect that a good many sellers and agents are not bothering with a HIP on the assumption Trading Standards will not be interested. Obviously, that is very unfair on those law abiding ones.”
Paul Walker, of the Institute of Domestic Energy Assessors, painted a graphic picture of a HIP industry living on borrowed time, uncertain as to whether HIPs would be immediately suspended, and if so when, or whether a 100-day consultation would follow.
He said the confusion was such that many personal search companies have withdrawn credit facilities to HIP providers.
“Payment up-front and cleared funds are now required before any searches are carried out,” he said. “The HIP with ‘No sale no fee’ has been withdrawn. The HIP ‘deferred payment’ has been withdrawn.
“This leaves not only the industry in turmoil, but the public as well.
“The knock-on effect is that the public who are aware of this situation are holding back from putting their property on the market.
“HIP providers are advising that their customers should hold off ordering a HIP and estate agents are doing the same.
“If the Government do not issue clear guidelines about the HIP in the next 24 hours, then the property market could grind to a halt within the next 48 hours.”
Mike Ockenden, director general of AHIPP, said this morning that there were still credit facilities being offered, with the deferred payment option still available from Close Brothers.
