Estate agents have been told by shadow housing minister Grant Shapps to keep obeying HIPs law.
Shapps, who has promised to dump HIPs if the Tories win the election, said: “I do support adherence to the requirements of the HIP regulations and will continue to do so until those requirements are removed through legislation.”
If the Tories do get in at the election, Shapps has warned that it could take three months or so to get rid of HIPs.
Mike Ockenden, director-general of AHIPP, said: “AHIPP is aware that the uncertainty with regards to the future of HIPs has led to a few isolated incidents of non-compliance with the regulations.
“The regulations, however, are the law of the land and it is unacceptable for any estate agent to flout them. AHIPP will be unstinting in its determination to bring to account any estate agent breaking the law.
“This latest communication from Shapps confirms that all political parties, regardless of their position, are behind us on the issue of compliance. We call on all estate agents to act responsibly and within the law.”
Comments
John, the housing market smashed records in 2007 and since the introduction of HIPs, there has been a massive decline. The decline IS NOT a direct effect of HIPs, but HIPS are absolutelty a contributing factor. The seller doesn't know what a HIP is (just an extra needless cost) and the buyer doesn't want it/know what it is either. Scrapping HIPs AND addressing the stamp duty brackets could just be the kick start we need to get people selling again.
Jon Parkes: Gee - thanks for that wonderfully unbiased and balanced contribution to this thread. One would hardly know you own a company supplying EPCs...
I doubt that HIPs has anything to do with the poor state of the property market.
Years of over increases in price due to irresponsible borrowing and lending and a dire world ecconomy are the real problem. Stamp duty changes would be better than a scrapping of HIPs, as would a continued house building program to keep the supply levels more steady.
HIPs keeps time wasters off the market and has reduced sale to completion times.
Jason Coombes - Not strictly true about the income. Home owners have been put off selling due to the HIP ever since they were introduced and the trend still continues. The fact that they have always been under fire and that HIPS could be on their way out, is a very appealing reason to put your plans on hold for a few months.
HIPs going WOULD increase property transactions without a doubt. HIPs going and the stamp duty brackets being changed so that they are actually realistic throughout the entire county would be a stimulant to get the market moving again. This in turn would create an even larger income than what HIPs are producing in a bad market and are arguably a key factor as to why the market is where is it now.
However, HIPs got off to a bad start, being used as a profit maker for EAs, which was a ridiculous, short sited move. HIP providers were using this as a massive selling point - not the quality of their reports. Both as bad as each other at this point. HIPs were priced at £500 by some of my local agents. HIPs have constantly taken a hammering, but certain EAs have assisted with the earning this reputation.
Is Grant Shapps not pre empting the outcome of the obligatory 3 month PUBLIC consultation my making his "we will scrap HIPs" statements, surely that's the point of the consultation?
Jason Coombs has a point.
However their will be a Conservative manifesto and whilst not waterproof, if scrapping HIP's is not in it then do not trust Grant Shapps!
HIP's will go. No-one expected them to be scrapped the day after the election as there is a legal process to follow. So enjoy the revenue while you can.
Any professional business, we trust that most agents are professional, will comply with the law (until changed) without someone like the self-important Okenden threatening to control us!
I've said this before, no government will get rid of hips because of the sheer loss of income - not because they're anygood in their current form. As for Okenden threatening to bring unruly estate agents to book - Hah! they can't even sort themselves out..!
This is the second change by Shapps - is he preparing the industry? Now they will know the size of the revenue loss and the benefit cost increase.