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HIP rules 'will hit housing recovery'
Nicholas Cecil, Chief Political Correspondent03.04.09
MINISTERS were accused today of hampering the ailing housing market's recovery with tougher rules on home information packs, which come into effect on Monday.
The Conservatives warned that the requirement to have a pack, rather than just to order one, before putting a home up for sale would hit the property market.
Shadow housing minister Grant Shapps said: "HIPs have already harmed the market and discouraged sellers, and now Gordon Brown is making it even worse."
Housing minister Margaret Beckett has already reformed HIPs by adding a questionnaire covering issues such as flood risk, car parking, planning permission, service charges, gas and electricity safety and structural damage.
Mr Shapps warned today that the questionnaire, to be completed by the seller, could lead to a wave of legal action.
Unscrupulous sellers would also be able to sidestep difficult questions to avoid lowering the asking price by ticking a "don't know" box, he said.
"Property information questionnaires are not worth the paper they are written on, and will create a bonanza for buyers' lawyers to start suing sellers," Mr Shapps said.
"These changes will make buying and selling your home even more of a legal minefield and even more stressful," he added.
Figures published yesterday showed house prices are rising for the first time in 17 months, by 0.9 per cent.
Mrs Beckett has admitted that HIPs need to be made to work better and that they were opposed by major players in the property market, including the Royal Institution of Chartered Surveyors.
The Conservatives have vowed to scrap the packs if they win power and today warned that home sellers risked being fined £200 if they put up a for sale sign before having a HIP.
Government research has shown that the packs have hit the property market, delaying some people from putting their home up for sale, but ministers insist they speed up sales.
Reader views (7)
...just a tax by the back door, totally worthless, what else do you expect from this Government, total utter incompetance. Waste of time and effort.
- David, London
Whilst searching for properties, hardly ever do I look at the HIP Environment information, as I don’t trust anything UK Gov does.
It would be far more useful to prospective buyers had floor plans been made mandatory. Too many Estate Agents appear to be downright lazy in this recession by refusing to create good floor plans.
- Carl Barron, Christchurch, Dorset
Anthony, because then you'd have to pay the £200 fine, as well as pay for HIP, you didn't think they'd be stupid enough to leave a loophole when it comes to ripping people off for more money did you!
- Kathy, London
Since the fine for not having HIP is £200 and the average cost of preparing one in excess of £350, why would anyone bother?
- Anthony Pierce, Bromley
They have something very similar here in Australia, a Section 32 document. Estate agents can market properties without this being available but are not allowed to accept offers until the would-be purchaser has been given a copy of the document.
If the HIP rules discourage some people from putting homes on the market surely this helps those who have done so - less competition.
- Tonyb, Melbourne, Australia
HIps - a waste of time and money and the only reason they have not been dropped is there was too much Labour political capital invested in them. Drop them and it would help free up the housing market
- Jeremy E, London
It's another wave of bureaucracy introduced by these weasels not of benefit to anyone except this new industry they have created for no doubt special interest lobbyists. It won't help the buyer who will still have to get a survey done and it penalises the seller, it helps no one except council tax assessors.
- Disgusted From Glasgow, Glasgow
