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Lords briefing: Home information packs - Monday 23rd March 2009
Response to oral question in House of Lords on the continuation of home information packs in the recession.

Lord Dixon-Smith has inquired whether, in the light of current housing market conditions, the government will abandon the requirement to provide home information packs (HIPs).

Government spokeswoman for Communities and Local Government, Baroness Andrews, denied that the current housing market conditions were as a result of HIPs.

She suggested that problems were caused by the economic downturn and that HIPs had no effect on the number of house purchases.

The minister was also asked if the government would review any inhibiting factors in secondary legislation - highlighting the fact that HIPs was secondary legislation.

Baroness Andrews argued that abandoning HIPs would not help the housing market. She referred to a recent survey carried out by an estate agent which indicated that out of 16,000 transactions, purchases were completed on average six days quicker.

But HIPs were criticised by peers for making no difference to the housing market and only adding to the cost of selling a house.

Baroness Andrews said HIPs regulations required sellers to complete a property information questionnaire which detailed information including energy efficiency credentials.

She said HIPs were valid as long as they stayed on the market and were even valid a year after they were initially produced, even if the sale fell through.

Baroness Andrews was encouraged to reduce extra burdens on homebuyers. It was highlighted that if HIPs were more than three months old they were rarely accepted by building societies or bank managers.

But Baroness Andrews argued that HIPs needed to be seen and that estate agents were not been making sure that buyers and sellers see the HIPS. She highlighted that this practice would change as of April 6 when they put their property on the market.

She also said that 2 million sellers had adopted energy performance certificates through HIPs.

http://www.epolitix.com/latestnews/article-detail/newsarticle/lords-briefing-home-information-packs/

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