Estate agency leaders this week called for the urgent suspension of Home Information Packs after a picture of bungling was painted by a committee of MPs looking at the work of Communities and Local Government.
The Local Government Select Committee warned CLG to step up its game, become a big hitter and correct its flaws in management and policy.
The report, written in response to CLG’s own annual report, particularly criticised the lack of progress on eco-towns, the poor implementation of HIPs and the disappearance of European funding through CLG’s mismanagement.
There was also reference to CLG’s failure to control an internal bullying problem.
The report said that CLG had mishandled the introduction of HIPs, adding that CLG “is still struggling to perfect the scheme at a time when the housing market needs more robust and effective initiatives”.
Conservative shadow communities secretary Caroline Spelman said the comments by the MPs were a vote of no confidence.
“There is a litany of failure across the Government’s flagship programmes from Home Information Packs, to eco-towns, to its own internal management,” she said.
Liberal Democrat housing spokeswoman Sarah Teather said: “HIPs have been an implementation disaster from the very beginning.”
Meanwhile, estate agency figures spoke of their mounting concerns.
Nicholas Leeming, director of propertyfinder, said: “Estate agents across the country can see HIPs are simply not delivering and want them abolished. Sellers don’t know what they are and buyers ignore them.
“The Government’s priority for the property market should be making it easier for people to move home at a difficult time, rather than tying the process up in red tape. The original purpose of the legislation has been lost in Government U-turns, and HIPs need to be scrapped. At the very least, they should be suspended until the market is back on its feet again.”
Peter Bolton King, chief executive of the NAEA, said: “The system as it stands is simply not working.
“Firstly the cost is punishing sellers in the pocket at a time when they really need all the help that they can.
“More galling, they are spending this money in the knowledge that 77% of buyers admit that they paid no attention to the pack whatsoever.
“Margaret Beckett herself admitted that HIPs are not working – but now she seems to have buried her head in the sand along with the rest of her department. HIPs are confusing to customers and act as a dampener on a housing market which is essential to Britain’s economic recovery.
“With all indicators pointing to a troubled year ahead, the NAEA calls on Mrs Beckett to suspend HIPs while the housing market is suffering and re-examine their viability once the market has begun to pick up.”
In a statement, CLG said: “We are committed to building on the progress of the last three years, by further improving our performance in leadership, strategy and delivery.”
According to its own annual report, citing research by the National Audit Office, 72% of sellers are satisfied with HIPs. However, only 40% of buyers see the HIP before purchasing and 77% say the HIP had no influence on their purchasing decision.
CLG also admits many HIPs could become out of date in current conditions, but Beckett has steadfastly rejected suggestions that HIPs have an adverse effect on the housing market.
*Three years ago, Beckett presided over crippling delays to paying farmers their subsidy entitlements when she was in charge of DEFRA. Staff at the Rural Payments Agency were criticised for scandalous and time-wasting behaviour. Beckett was then promoted to Foreign Secretary. She was demoted to become Labour’s eighth Housing Minister since 1997 in Gordon Brown’s reshuffle last October.
CLG criticised over HIPs as calls mount for their suspension
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Comments
FACT: Only around one in 8 properties being marketed are getting sold. So 7 out of 8 hIPS end up in the bin. Typical labour waste.
FACT: Only around one in 8 properties being marketed are getting sold. So 7 out of 8 hIPS end up in the bin. Typical labour waste.
It's time that Margaret Beckett stood up to the plate and admitted HIP's have failed and scrap them. They know it, we know it, the market know's it! Only a politican won't accept it when there wrong. So much for accountability.
HIP....EPC...an absolute waste of time and money!! When are they going to learn? Answer:NEVER.
I guess there's no option but to vote Consevative at the next election.
I recall the poisoned chalise being passed from Ruth Kelly to Yvette Cooper to Caroline Flint and now to Margaret Beckett - all of whom looked stupid and feeble when trying to depend the nonsense that is HIPs! That's the picture I will always have of these women; their credibilituy is 'shot'. Why doesn't this joke of a government see that the housing market is like a patient in a bad way in hospital and try to help the patient to survive instead of pulling out the drip! The industry is on it's back - it doesn't need to be kicked to make sure it dies!
I hear the Tory claim to scrap HIPs but it may find that it has a responsibility to the peripheral industry that has emerged, particularly if faced with a legal challenge should it to attempt to dismantle it. The answer then for the Tory government in waiting is simple. MAKE HIPs VOLUNTARY. Those that support them can put their case for each vendor to decide. I think the outcome is predictable. EPCs would remain a requirement but as an information gathering process to better understand the overall efficiency of housing stock in the EU which is what the original directive was seeking to achieve. Let these be commissioned by the buyers solicitor as part of the completion process.
Regardless of political allegiance this government is on its knees and there has never been a better time for the industry to educate and petition the public with truth and fact as to the reality of HIP’s, their failure and ineffectiveness. The government won’t welcome further condemnation from voters particularly as there remains a strong stench of complicity and collusion with the banking and financial crisis, irresponsible lending and inflated house prices. Now therefore is the time to launch a properly orchestrated consumer campaign and appeal directly to the public. The looming first day marketing outrage and its infringement on freedom of speech and erosion of civil liberty provides the very best opportunity to date to solicit public empathy and ignite indignation and anger. The inclusion of the PIQ gives rise to further opportunity Government is not interested in what estate agents think and never has been. It preys on the belief that in the public’s eyes we are the devil incarnate so being seen to accede to our views would only endanger public acceptance of HIPs. It anticipated that our protestations would be met with apathy or, even better, that our manoeuvring would be witnessed as self interested and cynical protectionism. Its why the vile duo of Yvette Cooper and Ruth Kelly conveyed their propaganda directly to the public with the misleading message that HIPs were essential to improving and making transparent the house buying transaction. Within this was a covert assertion that HIPs would guard against estate agents deceit and treacherous behaviour. As an industry we never really engaged with the public to counter this and expose the very real flaws with HIPs. We did not proffer or seek public support of a viable alternative or the move to binding commitment based offers and we failed miserably to expose the hijacking of the whole process simply for the EPC, itself a European directive albeit willingly and over zealously embellished by our own government. Many of us fully expected abandonment at the last hour but under estimated government’s resolve not to loose face and salvage something from the wreckage however damaged and imperfect. We allowed the government to win, we focussed on superficial elements and failed to mobilise the industry in uniform opposition and I hold the NAEA accountable for that in no small measure.
We need the public to understand that improvements to search acquisition was only made to make HIPs viable and erroneously claim to have accelerated conveyance and reduced sales fall out. We need the public to understand government profiteering through the VAT collected on the cost of a HIP. Why should the EPC attract any VAT when it is a document mandatory by statute in similar fashion to a vehicle MOT which is zero rated? We need to expose that allowing 28 days for the searches whilst the EPC must be available day one is a government admission that it purposely misled the public as to its implementation of HIPs. The private sale exemption condemns and mocks the whole HIP objective and suggests its relevance therefore is only to marketing rather than completion. Perhaps the government thought that it could circumvent any issue of human rights.
It is irrelevant whether a HIP takes one day or twenty to compile. It is immaterial as to how well or not agents are organised in their pre-marketing preparation. It matters not that first day marketing may not really be that beneficial in the current market. Whatever your standpoint on HIPs a fundamental civil liberty, that of free speech, has been removed from the property owner in the name of HIP’s and specifically with regard to first day marketing. We need the public to be in no doubt of this.
Peter Bolton King, Chief Executive of NAEA suggests that HIPs simply isn’t working whilst punishing sellers in the pocket and made all the more galling that 77% of buyers admit to having paid no attention to the pack whatsoever. Is it not about time that after at least 4 years of public arena debate that our most prominent industry body is able to construct a more cohesive, coherent and persuasive argument to challenge the continuance of the legislation? Its public anti HIP posture may be sincere but its effectiveness is certainly less than robust. The need to represent a cross section of opinion among its members would appear to have given it fence bottom (perhaps it’s got a SPLINTA!) Its desired ascent to that of official industry regulator may be having a diluting influence on its convictions. We need to move away from pointless subjective arguments and focus on failed and corrupted objectives to present an overwhelming argument for suspension.
In 2 years at my branch no buyer has ever asked to see a HIP. Suspend or get rid.
People stop moaning you really are wasting your time on this, HIPs are staying so get used to it.
Anyway all you Estate Agents out why are you moaning you get a commision/referral fee for each one so you will be out of pocket if they go thern you can start maoning.
HIPs do make a difference anyway if we went back to the old system people would still have to fork out Hundreds of pounds to pay the search fee etc so whats the difference.
Look carefully at the OFT investigation, it is not just about industry regulation and internal conflicts of interest. It is equally concerned that the market is an open one where new and progressive business models can enter giving the seller both choice and cost benefit. Go ahead those of you who clamour for exchange ready HIPs but be wary of what you wish for. Such commoditisation of the process can only hasten the eventual “supermarketing” of property. Our government is incompetent and stupid but that does not make it harmless and we should be ever vigilant and suspicious of its shameless buddying up to big business. Still in Tesco you get a nice machine to put reduced stickers on and a free uniform!
When I heard about the proposed HIPs in 1998 – I was loud in my condemnation! I thought it was a joke then…and I still do. It has complicated the process of sale, slowed the take-on of new properties and created many unnecessary problems for sellers and estate agents...and it still has not addressed many important issues.
Surrey House Hunters
Weybridge, Surrey.
* Property Consultants
* Relocation Agents &
* Inventory Clerks.
You can produce a proper Exchange Ready Hip, quickly, easily and cheaply. Work with a good national Hip provider (with an ex-conveyancer at the helm) and with good local lawyers of you choosing. Job done!
Exchange ready HIP? Good if you are flogging them to us! Theory OK till the Lawyers get involved or you have a chain, same delays. Don’t waste your money on them, the whole profession needs to change.
Mr Peter Bolton King If your statement is correct "Firstly the cost is punishing sellers in the pocket at a time when they really need all the help that they can".
Ask your member to stop putting on £150.00 commission for sending an email.
HIPS are here to stay.Content may change but epc's will be be the central part.It seems logical that purchasers should be given direction from the epc as to what to change when they move in.The savings on fuel costs in some cases are massive for insulation and a new condensing boiler,wether you believe in global warming or not.Landlords agents can promote a property quoting the fuel costs over 6 months if it is a c or b it will be be much less than d's or below.The rest of a HIP is necessary legal work so I don't understand why there is a call from the industry to suspend them.As an agency we have set up our own HIP(our staff are trained deas and a local solicitor does the legals) which is payable up front but taken off the fee on completion if we sell it.
Its here to stay however much shouting is done.Working with it as agents is much easier and much better for business...in my experience and view.
I dont think one estate agent in the land minds ideas that help people move quicker,.
Its just what happens when you get a streamlined, competitive private industry colliding with a red tape, admin based, costly,bad for customers wallets waste of time.
Nothing personal hip providers...get a real job..
I would be facsinated to know if those agents who are making profit from HIPs provision are decaring this to the client in accordance with the provisions of the Estate Agency act - I suspect many are not!!
Jon Hilton makes a good point. These exchange ready hips are bloody good. We've tried them with Simply HIP and they make a big difference.
I agree with Rich in that we have also seen exchange times definateley quicker. The new PIQ from 6 April will be interesting, on one had more to do, on the other more transparancy that must help at the end of the day. Its easy to whinge about Hips but I can't see what all the fuss is about! Our vendors have'nt said anything negative - maybe we as an industry have got to start looking at the positives?!
We deal with Conveyancing & HIPs... Hence if the Tories do away with HIPs, fine - it won't dramatically change our business so I've no axe to grind here. Having said that if HIPs do go, European legislation says we're stuck with the EPC to be carried out upfront... so there's always going to be some initial messing about when a property goes on sale... If the Government wants to speed up the process further I think the Exchange Ready HIP will help... Having said all this it's going to be chaotic from the 6th April and all agents need to brace themselves for the HIPs changes coming into effect ! Jon
True vossy,,only time i ve felt guilty doin gthis job is when i have to take £50 off a vendor to pay for my admin of this useless piece of info.
Must be what it feels like to be th egovt. taking money for doing nothing.
HIPS are a farce! They also mean that law abiding Agents such as ourselves either play the game and REFUSE instructions where Vendors will not pay for a HIP and watch them instruct our competitors who are happy to flout the law OR we have to break the Law by taking the instruction regardless. ITS SUCH A WASTE OF TIME
christian if you are putting that many houses on the market and making money out of hips you need to get a new lister who doesn t over value. £100 profit on a hip is a drop in the ocean even if you list 10 a week.
I have seen many comments about us making money out of hips justifying their existance - very short sighted our proffesion is about selling houses and offering good advice not making a few hundred quid selling this useless document - I agree with rich, keep the EPC, dump the rest.
Surely we are not the only agency making money out of HIP's? It is currently our most guaranteed income stream and covers all of the office costs. Selling houses is then just a welcome bonus! Getting rid of HIP's is not the answer...
In reply to James Smith. HIPs 'adding value'? What planet are you on? And if Estate Agents are surviving on backhanders from HIP providers or scrambling to do their own I would question their business model.
mmm i just had a sale go through 10 days quicker because of Hips..thats amazing. pity is it took 12 months longer to sell it because labour and banks wrecked the economy. £300 quid or a few more days to sell your house .. i know which i d choose.
HIPs should be abolished now. They serve no useful purpose. We have received just ONE request to read one from a prospective purchaser since August 2007 (and even she didn`t know what she was looking at!) This speaks for itself.
Abolish the packs but keep that pretty graph on the details.
That way govt. save face, and the poor inspectors who were misold get to keep their jobs.
Govt. can lie all they want but everyone knows its just a tax. They looked at cancellation figures and thought they would try and get a bit more money out of people. That killed the market (or did nt help) well done labour.
Intertested to know how Salmon (an agent in Northampton) is the font of all knowledge? That aside, HIPs are adding value for many agents and in some cases helping them keep their doors open.
77% of buyers say the HIP did not influence their buying decision? Rubbish! More like 100%. Anyone want to tell us differently?
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