Home Information Packs- Will They Really Happen?

Thousands of inches of column space have already been dedicated to the subject of Home Information Packs (HIPs), and no doubt many more will follow in the next few months. Although the common opinion across the property market is still that the Packs have not been properly thought through (a view also taken by the Law Society), it would be very surprising if HIPs were not made compulsory on 1st June 2007.

Too much has already been invested in the Packs for the Government to back down now. However, it would have been difficult to miss the climb down by the Department for Communities and Local Government (DCLG) on 18th July this year, on one of the most controversial elements of the HIP, namely the Home Condition Report. A Government press release on 30th July indicated the decision was “driven by the overriding priority of ensuring a smooth implementation that maximises benefits for consumers”. The more cynical might suggest the actual reason was a catastrophic shortfall in the number of Home Inspectors who could prepare the report in the first place.

The market is supposed to prepare the Home Condition Report voluntarily, but this remains to be seen in the months following June 2007. The overriding consideration for most people is still a cost: benefit analysis, particularly since costs estimates of a HIP production (pre 18th July 2006) were £600 and more.

Although a large section of the HIP is now shelved (albeit only temporarily) sellers will still need to produce searches, legal documents and an Energy Performance Certificate (EPC) to comply with the law. It is intended that Home Inspectors will be producing the EPC- likely to be similar in style to the A-E ratings often seen on new white goods. The cost of obtaining an EPC is not yet known, and will be the subject of a further article from Foot Anstey. It is assumed that market forces will determine the costs of such EPCs; it is unlikely that statute will deal with this aspect.

Further information contained in the Government Press Release suggests a number of ongoing steps:

1. The DCLG is working with the Qualification and Curriculum Authority to formulate an interim qualification for would be Home Inspectors. This qualification would enable the “Inspectors” to prepare EPCs without having fully qualified ;
2. The DCLG is ascertaining whether the Home Condition Register and Certification Schemes need reworking in order to “retain strong safeguards to ensure consumers are fully protected”;
3. The continuing preparations for the HIP dry run this autumn, which will still take place.

Interested readers may like to track Government’s progress on online by accessing www.homeinformationpacks.gov.uk, and Foot Anstey Solicitors will be providing regular bulletins to keep our readers informed.

Published 29/06/2007.