28/05/2007

Another HIPs hiccup as process is delayed

Community Secretary Ruth Kelly has announced that Home Information Packs (HIPs) will now be introduced in stage from from 1 August 2007, rather than on June 1. The postponement follows pressure from opposition MPs and the launching of a legal challenge by the Royal Institution of Chartered Surveyors.

Says Richard Atkins, ‘The Government's embarrassing climb down on HIPs on 22nd May means that HIPs will be implemented on a phased basis with 4 bedroom properties and above requiring a HIP from 1st August.They are to phase in packs for smaller properties assufficient energy assessors become fully accredited.Only 520 of such people exist at present!

There are some other important concessions:-

1. Until 31st December 2007, Agents can market properties immediately they have commissioned a pack allowing first day marketing. This is a major change and one that will be welcomed by everyone.
2. EPCs can be commissioned up to 12 months before properties are marketed to ensure they are in place at the point of marketing.

The effect of all this is to introduce HIPs on a phased basis and minimise disruption to the housing market.

Naturally, many pack providers who have built their business model around large volumes of work and remote service are likely to suffer. However, for others, this is probably good news as it gives us all a chance to test our systems and adapt gradually to the new arrangements.

The question remains, however, as to whether the Government will go ahead at all on the 1st August. Faced with the prospect of further Court action they may still back down altogether. Watch this space!

Richard Atkins is a partner with Taylor Walton solicitors specialising in relocation – see www.taylorwalton.co.uk

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