The initial stage of the Home Information Pack (HIP) trial has been successful. Over 90 per cent of consumers have opted for the packs from our six branches that are taking part in the Association of Home Information Pack Provider’s (AHIPP) dry-run in Cambridgeshire. We have found a clear majority of homeowners have bought into the idea of HIPs. Many have previously found the homebuying process incredibly tiresome and stressful and believe it is about time for the process to be improved and speeded up.
However, the high take–up of HIPs is of no surprise when the packs are available free of charge as part of the Department of Communities and Local Government’s (DCLG) incentive scheme. The true success of the early roll out is that there has been significant progress in educating the public, while HIP providers have been able to devise an education campaign, test systems and train staff in preparation for the mandatory introduction of HIPs.
Great opportunity
Although the full benefits can not be realised until all sellers are required to have a pack, participating in the early roll out is a great opportunity to give the industry valuable time and experience in ensuring that HIPs can be delivered to the consumers in a fast and effective fashion.
Estate agents and mortgage intermediaries will play a key role in informing the public and they may be at the forefront of the implementation of the pack. They need to be aware of all the information required in a HIP, how a pack can be commissioned and the surrounding legislation, to compete effectively in the changing market.
AHIPP has made great progress in the early roll out the packs and is soon to target a further 12 regions across the UK. The government recently announced that Mori has been selected to independently appraise the progress of the area trials, and the industry will be eagerly awaiting the results.
Reassurance
People within the industry who have previously opposed the packs because they believe HIPs will slow down the housing market should be reassured by the government’s announcement last week. Properties can now be marketed after local authority searches and leasehold documents have been ordered, but not necessarily delivered. The government has taken on board people’s concern about the efficiency of the local authority searches and the implications that will have on the market, once HIPs are mandatory.
The government’s new guidance to local authorities to provide prompt access to all search information is welcomed. This move is expected to allow local authorities and the private sector to work together towards delivering a new, more efficient and cost-effective search service.
EPC delay
It is widely believed that the concession for searches will eliminate any initial hold ups regarding the marketing of the property in the preliminary stages of implementation, ensuring that the market is not badly affected.
However, many within the industry are concerned that there will still remain a delay in marketing a property as there will not be enough domestic energy assessors to carry out the mandatory Energy Performance Certificate (EPC), which is set to be a key element of the packs.
It is essential that the government continues to reassure and support assessors in the run-up and after the introduction of the information pack, to ensure enough people are qualified to carry out an EPC. Falling down in this sphere could have serious consequences for the whole industry.
Enormous task
Although the DGLG announcement last week reinforces the government’s commitment to HIPs, the process to inform the public and industry of the final regulation details is an enormous task and an aggressive marketing and PR campaign needs to start now.
Despite the announcement last week, there is still a sense in the mortgage industry, and in particular the intermediary arena of ‘will or won’t HIPs happen’, and the selection of industry players that are dragging their feet will suffer in the end.
Love them or loathe them, HIPs are here to stay and time really is running out to be prepared for their arrival.
