Evaluate HIPs properly before extending scheme
Friday 17 August 2007The Law Society has today criticised the government for failing to conduct a thorough review of the first phase of home information packs (HIPs) and Energy Performance Certificates (EPCs) before extending the scheme to smaller properties.
The Society's concerns follow a government announcement that HIPs and EPCs will be rolled out to three bedroom properties from 10 September.
The Society is arguing that it would be highly irresponsible to move to the next phase until there had been time for a more meaningful evaluation of the introduction of HIPs. The Law Society believes that a proper evaluation to accurately monitor the first implementation phase is essential before extending the scheme.
Paul Marsh, Law Society vice president said:
'We are deeply disappointed that the government is continuing its cavalier approach to HIPs and the home buying process. It is far too early to be sure how the introduction of HIPs has worked in practice. It is impossible for the government to have taken into account the operation of HIPs in the market following their introduction during the quiet August market, particularly given the fact that the first phase of the scheme only applies to 17% of the total market.
'The government needs to wait to ensure that the first tranche of HIPs has operated successfully before considering rolling it out to smaller properties, rather than rushing ahead prematurely. October would be a more acceptable earliest date for the introduction of HIPs, so that in September a full review of the introduction of HIPs could take place.
'There have already been enough uncertainties over the arrangements for the introduction of HIPs. It is in everyone's interest to ensure that those problems are not repeated in any subsequent roll out.'
The government appears to be bowing to pressure from those with a primary financial interest in the HIPs market while there has been no formal communication to the other established stakeholders such as RICS, NAEA, and the Law Society.
The Law Society is urging solicitors to prepare fully for the extended scope of HIPs and for further extension thereafter to all properties.
For more information, journalists should contact the Law Society press office on 020 7320 5764.
