The Government has today announced that compulsory introduction of home information packs (HIPs) will be implemented from June 1 2007. These packs would include documents on the condition of the home and reduce the burden on the buyers who need to carry out surveys now.
But, the Council of Mortgage Lenders (CML), which has been coordinating with the Government for effecting an orderly implementation of the HIP regime, is not happy that the industry advice of the period between October 2007 and January 2008 being the most suitable has been ignored. The CML fears that the housing market could be disrupted in its busiest season and so is disappointed with this timing.
According to CML, sellers would flood the market before June so that they could avoid paying up to £1,000 for the packs. CML also anticipates that a lot of people would try to dispose off their homes much earlier than planned before so as to avoid buying a HIP, which could create a "spike" in the housing market.
Jim Buckle, managing director of internet property site Property Finder said: “If it was (to be introduced in) August it would be even better but whenever it happens it's going to require a shift in behaviour.”
The Government said it had taken into consideration opinions from across the industry before zeroing in on the date.
A spokeswoman for the Office of the Deputy Prime Minister said: “It provides the industry with the time needed to ensure that HIPs can be implemented smoothly and successfully and deliver real improvements for consumers.”
Announcing the date, the Government said that £1million a day was being wasted each day on failed transactions as buyers spend money on valuations, legal advice and searches.
The Royal Institute of Chartered Surveyors (RICS) said the date would give assurance to the market. It, although, described the timeframe as "tight" as only a few candidates had qualified to become home inspectors.
Jeremy Leaf of RICS said: “If we are to ensure that the reforms are implemented as smoothly and effectively as possible, we need to pull together to deliver sufficient numbers of suitably qualified, well-regulated and experienced practitioners who enjoy public confidence.”
The Government has instituted a new home inspector qualification. Currently, 1,700 people from the surveying and property industry undergoing training to become inspectors. Around 5,000 to 7,400 are needed when HIP is in place by June 2007.
However, CML Deputy Director General Peter Williams “despite being disappointed” has said that CML “would work closely with the Government and industry to mitigate any negative effects and make the transition to HIPs as smooth as possible.”
Posted
on : Fri, 18 Nov 2005 16:15 GMT | Mortgages News
By : Salim Patel
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