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A report claiming to have found a loophole in rules governing Home Information Packs (Hips) today has sparked fresh controversy over the beleaguered scheme.
The report from the Royal Institution of Chartered Surveyors (RICS) said that new regulations published by the Department for Communities and Local Government (DCLG) on Monday do not require sellers to produce a Hip when contracts are exchanged.
RICS claims that under the new DCLG rules sellers need only prove they have ordered a Hip at the point of sale. The regulations do not say that a completed Hip must be acquired, potentially saving sellers from having to pay for a pack, RICS said. Only the Energy Performance Certificate (EPC) will be mandatory by exchange of contracts.
It branded the packs a "farce" and said the scheme is "fundamentally redundant."
But a spokesman for Communities and Local Government (DCLG) department said that the RICS claims were false, while the Association of Home Information Pack Providers (AHIPP), said that today’s RICS report was "nothing more than the typical anti-Hip propaganda." AHIPP said that the allegation was "totally unfounded".
Jeremy Leaf, a RICS spokesperson, said: “RICS members have been pressing for clarification on the new regulations, for fear of breaking the law. We have been forced to tell them that to the best of our knowledge, selling a house without a Hip would not be illegal during the interim period. Unless the Government can show us the regulation that says a property cannot be sold without a Hip, consumers and industry will be left to draw their own conclusions. This will lead to two groups of consumers – those who pay for a Hip and those who legally get round the rules.”
The Government has faced calls to abandon or delay the introduction of the packs, which will contain an energy rating that will rank homes from A to G.
Last month, only days before Hips were to become compulsory, the Government announced that the introduction of the scheme would be delayed from June 1 to August 1 and restricted to four-bedroom houses.
Plans to include a compulsory, more comprehensive Home Condition Report (HCR) were scrapped last year after complaints that buyers would not trust it and mortgage lenders would not take it into account.
Earlier this week Ruth Kelly met representatives of the Home Information Pack industry, which warned the Communities Secretary that she faces a multi-billion claim if she scraps the scheme.
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my wife and i were looking to sell our home we had an agent come round to sell our home and as we whent through the contract none of the hip fees were exsplained to us we feel that the agent played on our nieve and vaunrable side now we haven't sold our home we have a bill of £800 can any one help
jonathan vitkunas, taunton, somerset
as an estate agent in the wilds of south yorkshire i have yet to receive a request form a potential buyer too see a HIP> this is a full month after their introduction in four bed properties. please mr brown by all means make it easier for buyers and sellers, bring in the scottish system and do away with this nonsense that my clients will untimately have to pay for.
debra boucher, doncaster, uk
I wonder how many supporters of HIPS have actually ever seen one. My partner and I are currently house hunting, and have come to the conclusion that they are a total waste of time and money, and that the RICS and others are right in opposing them. How the government can claim that they have "won hearts and minds" frankly beggars belief. Helpful gems include a page on the lack of wall insulation in a Victorian terrace, the absence of solar panels in a listed house in a conservation area, where the non-use of low-energy lighting in a house in the same area was heavily criticised, and penalised. They had very elegant chandeliers .On each occasion, we see the note " planning restrictions may apply" and we are advised to seek "professional advice" - from a qualified surveyor presumably? When we find a house that we want to buy, we shall do the sensible thing, and pay for a proper survey.
The only possible reason for not abandoning HIPS totally is the damage to a few government egos.
Richard Cleeve, Brighton,
As some who has always bought run down, in need of repair ,,very large houses. And then lived in them for 5 years doing them up.
HIPS are a hinderence as they high light good areas I would normally keep quiet about in price negociation.. And they high light bad areas I am actually purchasing the property with (for), that over 5 years when I renovate and put right will give me a return on my investment.
HIPS take away my profits as far as I can see
Nicholas Iles, Oswestry, Shropshire
Why can't one see how energy efficient a house is by examining the last 3 utility bills, for example ?
These days one really needs to know has the house been built in a flood plain or near landfill sites/subsistance etc - how much energy is wasted when one's house is flodded/subsided to fix this again and again?
Now a whole new industry of HIP assessors has been created, they need to earn a good living/get back their investment based on HMG's experimentation, which as usual has been done without a pilot which would have shown up all these current and the future problems this government-led chaos will cause.
it's just a symptom of HMG knows best and ignores professional input/advice every time - a bit like NHS Dentistry, Public Transport and Railways - arrogant mis-management on a national scale when most of us would have got fired for such poor performance !
When will this government listen - after it loses a lot of seats at elections perhaps?
sam redman, London, UK
G/Brown said he would 'listen'and went straight ahead with the implementation of HIPs...... aprt from the energy aspect they are worthless and at best will duplicate and increase costs.
mike, oxford, england
Does the HIPs speed the sale in practice or slow it down? What are the figures for sale time so far?
Brian Gilbert, HAMPTON, Middx
There is good reason for the strong opposition to the implentation of HIPs by both the RICS and others in the property industry. By merely delaying the introduciton of HIPs last month, the government still seem hell bent on ignoring the views of those of us working in the industry and can see the impracticale implications of the scheme. The half cocked phasing in scheme only stands to cause more confusion. The industry has already had to go to the huge expense and logistical nightmare of trying to prepare systems to comply with a badly drafted, ill thought out scheme. Now we are faced with yet further changes to these regulations.
Yes we do pity the industries who have set up on the back of the HIPs scheme. However, it is time that the government finally acknowledged that the worthwhile EPC scheme is all that is needed for now, with HIPs themselves taken back to the drawing board, with proper consultation with the industry.
Andy Gent , Colchester,
The problems with HIP's?
Where should one start?
The seller, not the purchaser is responsible for it. So anything it says, is basicaly worthless, which is why mortgage lenders wont use it.
The HIP sounds good in theory, but can never work in the real world.
What exactly does the HIP accomplish?
Dominic, Manchester, UK
It seems like the purpose of these HIPS is to give a fuller picture of the property using standardised criteria to make comparisons easier. Why are people against this? Is it because it will expose the shoddyness of all the DIY bodging? Or is it the surveyors who were able to survey a house once and then charge each prospective buyer their full fee just for printing a fresh copy?
Caligula, London, UK
I welcome the meeting between the Government and RICS, but I do think that they need to take a step back from their persistent opposition to the implementation of HIPs. The intention of home information packs was to make life easier and less stressful for homebuyers and sellers, a point which many seem to have forgotten. The resistance to the policy is really making the situation much worse than it needs to be and being so vocal publicly is only serving to create further uncertainty in the market place.
Everything included in a HIP is already part of the process of buying or selling a house anyway, apart from the Energy Performance Certificate.Yes the pack would have been a stronger product with the Home Condition Report and the Government's decision to delay the bill has certainly not helped matters. But we have to move on, accept that HIPs will be introduced on 1 August and as an industry work together to make it work for the benefit of the consumer.
Derek Lithgow, MoveMachine, Halifax,
It is time that Ruth Kelly and Yvette Cooper admitted that HIPs are a bureaucratic imposition that only the self serving HIP industry - which sees an opportunity to make a fortune out of home owners - welcomes. No one wants them, and they do not serve their intended purpose. Cheaper to get out now and pay compensation to all the gullible unfortunates who believed the government, than stumble on with this costly shambles.
Let us hope that Gordon Brown will put them both, and their misbegotten plan, out of action on June 27th. But don't hold your breath.
Simon Evans, Devizes, UK