RICS move reopens HIP wounds

RICS believes the Department for Communities and Local Government (DCLG) has failed to carry out proper consultation prior to implementing of the legislation to bring in HIPs.

Chairman of RICS’ Regulatory Board, Teresa Graham, said: "RICS has not made the decision to commence Judicial Review proceedings lightly. We have exhausted all the alternatives and greatly regret that we were left with no other option if we are to protect the public's property interests."

However, the move has been criticised by HIP providers. The Association of Home Information Pack Providers (AHIPP) said it was disappointed by the RICS move.

Mike Ockenden, director-general of AHIPP, said: “It is difficult to understand why RICS has taken this latest step against HIPs when they are in the process of training both Home Inspectors and DEAs and in addition, play a prominent role within the HIPs industry, as a certification scheme.

“I would further question why they are now planning to spend their own member’s money on pursuing an avenue which appears to go against the interests of so many of their membership.

“However, those who have trained or are currently training to become Home Inspectors or Domestic Energy Assessors should not be concerned, this latest move will not impact on their future training or their future career progression within the HIPs industry.”

Meanwhile, Stephen Callaghan, director of energy-assessors.com, believed the move by RICS was politically motivated.

He said: "RICS' announcement that it is initiating legal proceedings against the Government over HIPs is nothing more than the latest knee-jerk reaction from the politically-motivated anti-HIPs brigade. Furthermore, it is a strange call from an organisation that has been given status as one of five accreditation bodies for the training of Domestic Energy Assessors.

"To take this step at the eleventh hour is not going to benefit the energy efficiency of the UK's housing stock, which is in a sad state of inefficiency, but is instead just another move in a game of political point-scoring and an attempt to cover over the fact that RICS has done very little to prepare for the arrival of HIPs, in spite of government legislation.

"With just ten working days remaining until the introduction of HIPs, the industry should be focusing its efforts on ensuring that consumers will receive a seamless service come 1 June."

However, Jonathan Haward, managing director of The County Homesearch Company, labelled the implementation of HIPs a fiasco and indicated energy certificates could be provided before exchange of contracts, and not at the start of the house sale process.

Mr Haward says that a potential shortage of energy assessors could mean severe delays in putting a house on the market and that the statutory obligation to provide an energy assessment should take place before exchange of contracts, instead of at the point of marketing.

He commented: “This way the housing supply will be maintained, sales will not be affected, stamp duty revenue will be maintained, to the joy of the chancellor, and Europe will, over time, get what it wants.

“Even in its diluted form, the present HIP is going to inhibit people from putting their houses on the market – dampening if not totally eroding the enthusiasm for those who decided to put their property up for sale because they have seen something they like.

“When HIPs become law from 1 June they will effectively impose a £500 cost to the seller and quite simply will stall the market and tighten supply, increase demand and exert even more pressure on house prices.

“The EPC is simply kowtowing to Europe. Do we need an energy report to tell us to get loft insulation if we don’t have it and if we have a draught to get it plugged?”