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Housing market backs government on Hips

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The housing market has reacted with relief at the government's announcement that it is committed to using evidence from the nationwide trials to speed up the housing process.

There has been strong criticism from many quarters regarding the management of the home information pack (Hip) scheme, with some major payers within the housing industry claiming the packs would slow down the trading process, thus exacerbating the problem it was attempting to address.

Estate agents were concerned that the documents required to make up the pack would take a long time to acquire as independent surveyors are required to carry out the reports and there was also discontent as to the cost incurred by the homeowner.

But yesterday the government assured homeowners that there will be a transitional period imposed after the Hips become mandatory on June 1st, meaning that sellers could not have to have to hand all the required documents needed for a sale.

Mike Ockenden, director general of the Association of Home Information Pack Providers (AHIPP), said: "Agents who have previously opposed the packs should be reassured by this statement that there is no intention to slow down the marketing of a property.

"We must now all work together to get the necessary processes in place to ensure that consumers receive the best possible service and that they get to experience the true benefits from this much needed reform."

Meanwhile, Royal Institution of Chartered Accountants spokesperson Oliver Gilmartin was supportive of the government's move but was more hesitant on the effect on house prices.

"Any attempt by the Government to make the home buying process clear and transparent is to be welcomed," he said.

However, Mr Gilmartin added: "We anticipate that more property will come onto the market before June as sellers try to avoid the upfront costs of Hips. Any easing in house prices is likely to be short lived as we expect the market to level out quickly."

The government also announced its commitment to the energy performance certificate, which will rank a home on its energy efficiency.

But Nick Salmon, head of the Splinta campaign group against Hips, told the Telegraph this would stop people from looking at older homes on the market.

"There is a danger of creating an underclass of properties which people won't even bother looking at. It will create alarm where alarm is not due," he said.

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