Home Information Packs is an idea whose time was past before it was born. The UK property market is imperfect in many ways, but the notion that what was needed was more bureaucracy is an odd one. I am trying to recall if it was John Prescott who originally supported it - does anyone remember him?
A number of professional bodies are anxious to meet the government to discuss what they describe as a 'chaotic, costly and damaging' project. They include such muckrakers and trouble-makers as the Law Society, the Royal Institutes of Chartered Surveyors, the Council of Mortgage Lenders and the National Association of Estate Agents. Yesterday's press release from RICS was delightfully brash -
"Gold plating Brussels' requirements on energy performance, now the only remaining element of the HIP .. will actually increase carbon emissions not reduce them.
"Officials are blindly pressing on with their compulsory Whitehall solution despite evidence that this ignores market realities, introduces unnecessary regulation and is environmentally unsound."
We had an amusing letter recently from Trevor Kent, an auctioneer and erstwhile president of the NAEA, outlining some of the fun that will arise from the HIPs. Trevor estimates the market will contract 30% as marginal sellers withdraw (an exaggeration, but a fair point) -
When you look at the HIP on the house you're interested in making an offer on it may not have legal searches in, or even details of leaseholds as these can take weeks to arrive …
The Energy Performance Certificate will tell you things like "if you buy a new boiler for £3000, it'll save you £42 a year in running costs" …
Your solicitors and your mortgage lender will tell you they still want you to pay for a mortgage valuation survey and up-to-date searches because the vendor's HIP is no use to them ….
