| Home Information Packs were first mentioned as | | | | provision requiring a copy of a lease to be included |
| part of the Labour party manifesto back in 1997 | | | | in the packs. |
| and were originally deemed to be the solution to | | | | Conservative Shadow Housing Minister Grant |
| the then common problem of gazumping. In the | | | | Shapps, said: "Home Information Packs have |
| eight years that have followed, the reason for | | | | already strangled the housing market by |
| existence of HIPS is that they can speed up and | | | | discouraging sellers. Given its fragile state, the |
| simplify the current housebuying process. HIPs | | | | property market needs more bureaucratic red |
| were finally introduced last August in a bid to | | | | tape like a hole in the head. "Behind the |
| simplify the home-buying process, but have | | | | smokescreen of HIPs, Labour's real agenda is to |
| received some very negative press since. | | | | build up a property database of every home. |
| One of the main aims of the HIP legislation is to | | | | Property Information Questionnaires are most |
| reduce the current high percentage of agreed | | | | likely just another way of conducting Labour’s |
| sales (reportedly more than one in four) that do | | | | controversial council tax revaluation and re-banding |
| not make it as far as an exchange of contracts. | | | | by the backdoor. "The public will be clobbered |
| HIPS were intended to deliver this aspiration by | | | | twice - once for a costly Home Information Pack |
| providing key information at the beginning of the | | | | and then again in the form of higher council tax |
| house buying process. | | | | bills for home improvements and their parking |
| Recent survey has revealed that the majority of | | | | spaces." |
| house buyers think Home Information Packs are a | | | | There is evidence that the controversial Home |
| waste of time, with fifty-seven per cent of those | | | | Information Pack (HIP) scheme has failed to |
| questioned saying it is time to scrap HIPs and | | | | speed up the house selling process, new figures |
| many blaming the cost of providing them as a | | | | suggest. |
| contributing factor to the significant decline in the | | | | The packs, introduced a year ago despite huge |
| number properties being offered for sale in the | | | | opposition, are failing to be compiled in under a |
| UK. | | | | week – as the Government hoped would be |
| A YouGov poll found that only 5 per cent believed | | | | possible – because local authorities are far |
| the packs had delivered benefits, while 68 per | | | | slower at retrieving local searches than a year |
| cent said they had failed to make a positive | | | | ago. Searches are one of the key documents |
| difference. The results of the survey are | | | | contained within a pack. They flag up any potential |
| another blow to the controversial packs, which | | | | road schemes or developments that might scare |
| cost sellers anything from £200 - £400 and | | | | off a home buyer from moving to the area. |
| contain title deeds, searches and an energy | | | | |
| performance certificate. | | | | The average time taken by councils to hand over |
| The scheme was opposed by estate agent trade | | | | searches has increased by a third, from 5.3 days |
| bodies, solicitors and the Council of Mortgage | | | | to 7 days. Some councils are taking more than |
| Lenders. Critics of HIPS say that some buyers | | | | 20 days to process a request, with the London |
| have been forced to seek independent advice | | | | Borough of Hillingdon taking 44 days on average. |
| after finding the content of the packs unreliable. | | | | Local councils increasingly poor performance in |
| A Conservative party housing spokesman Grant | | | | regard to providing search data is impacting |
| Shapps said HIPs had undermined the housing | | | | negatively on HIPs in two ways. Firstly, virtually |
| market. “One year on, the public don't trust | | | | all HIP providers now subcontract their searches |
| the paper these packs are written on”, he | | | | to personal search companies to get the search |
| said. Mr Shapps went on to say that “the | | | | component for the HIP completed as soon as |
| only people who want to keep these broken HIPs | | | | possible. This means that the search information |
| are the vested interests who are peddling them, | | | | contained in the HIP will usually not contain most |
| and the Government ministers who are falsely | | | | of the relevant information as would be revealed |
| using the green fig leaf of the environment to | | | | by an official Council search. Secondly, with |
| justify this latest public policy disaster.” | | | | more and more councils levying higher level of |
| A Spokesperson from the National Association of | | | | charges for official searches and length of time |
| Estate Agents, said: 'Since their conception, the | | | | taken to deliver, there is a direct impact on HIP |
| packs have been surrounded by a catalogue of | | | | providers and, consequently, on the price paid by |
| disasters. 'And, so far, rather than helping to | | | | the consumer. |
| improve the home buying and selling process, | | | | |
| they have served as a hindrance and nothing | | | | Sir Bryan Carsberg earlier this month, after |
| more than a purposeless piece of red tape.' | | | | spending a year investigating the housing market, |
| | | | | recommended that HIPs should be scrapped, |
| Confusion over the implementation of the packs | | | | arguing that, "they don't make a useful |
| forced former Communities Secretary Ruth Kelly | | | | contribution to the house buying process. They |
| to delay their implementation and exclude smaller | | | | don't speed up transactions and they are in |
| homes from the initial phase of the scheme last | | | | danger of becoming out of date too quickly. "It |
| year. | | | | seems to me to impose a cost, without bringing |
| The troubled introduction of the HIPS scheme | | | | any benefit." |
| does not appear to have dampened the | | | | |
| Government’s appetite for HIPS, as they | | | | Shadow Housing Minister, Grant Shapps, said the |
| have recently announced plans to increase the | | | | slowness of the Local Authorities was proof that |
| amount of information required to go into Home | | | | HIPs were not working. "This shatters one of |
| Information Packs. This move will likely increase | | | | Labour's last remaining arguments about the |
| the cost of producing each HIP. | | | | benefits of Hips and adds to the mounting dossier |
| Government now wants to include a Property | | | | of evidence against them. "The industry doesn't |
| Information Questionnaire (PIQ) in the packs to | | | | want them and neither do the buyers and sellers |
| give people more information about a property up | | | | - they are strangling the market at a time when it |
| front. It hopes the move will reduce the | | | | needs kickstarting," he said. |
| likelihood of issues coming to light further on in the | | | | |
| process and causing delays or sales to fall | | | | Conversely, a spokesman for the Department of |
| through. The questionnaires would include | | | | Communities and Local Government said: "As a |
| information on any building work that has been | | | | result of the increased transparency brought |
| carried out on the property, details on parking | | | | about by HIPs, we are already seeing a drop in |
| arrangements, council tax banding and information | | | | cost for sellers commissioning searches – |
| on the utilities connected to the property. The | | | | more than 160 local authorities have cut their |
| Government aim to implement this extra | | | | prices by an average of £20. "We have issued |
| requirement as a mandatory part of the packs on | | | | guidance to councils to ensure they are giving |
| January 1, 2009. | | | | access to private search companies, to increase |
| Housing Minister Caroline Flint said: "Having the right | | | | competition and provide the consumer with |
| information about a property at the beginning of | | | | cheaper and faster searches." |
| the home-buying process is essential if we are to | | | | |
| reduce delays and cut down on wasted costs for | | | | However, as charges for official searches are |
| both buyers and sellers. "Hips are an important | | | | between two to three times more expensive |
| first step in achieving greater efficiency and the | | | | than the personal search option, it is doubtful |
| Property Information Questionnaire will only | | | | whether any HIP provider will utilise the option of |
| improve on this, ensuring the buying and selling | | | | the more expensive official search in a highly |
| process is simpler for all." | | | | competetive HIPs market. |
| The Government is also considering increasing the | | | | |
| quality of leasehold information that is included in | | | | Buyers of property may well find that the search |
| the packs. New information on leaseholds would | | | | information included within the HIP for the |
| include details on ground rent, services charges, | | | | property they are buying is out of date or too |
| the cost of buildings insurance and any major | | | | vague to pass the scrutiny of the lender. This |
| works that are planned, as well as a copy of the | | | | situation will of course delay the selling process |
| lease itself. There is currently only a temporary | | | | and defeat the object of HIPS. |