Will the Lords or RICS derail the HIPS start date?

Ray Boulger, senior technical manager at UK mortgage broker John Charcol comments, “Tomorrow’s motion in the Lords to revoke the HIPs legislation is very likely to be passed as the Conservatives and Liberal Democrats will support it and the Government do not have a majority in the Lords. Losing last week’s Commons vote would have been embarrassing for the Government. However as the unresolved problems with HIPs become more apparent, including the fact that the software used by 2 of the 4 providers of Energy Performance Certificates is still not working properly, losing the vote in the Lords will give the Government a convenient opportunity to defer the 1 June start date and blame the unelected Lords.

“This will give them time to rethink the current requirements and reintroduce the HIPs legislation in the next session of Parliament, after taking full account of the trials, which are still ongoing.”

Boulger continues, “Another possibility for the 1 June start date being derailed is the RICS call for a judicial review. The basis on which they have called for this seems to have merit and the initial stage is likely to be for a judge to decide if there is a case to answer, probably this week. If the decision is in favour of RICS there will have to be a full hearing and both sides will need some time to prepare their case. It is inconceivable HIPs could be launched on 1 June with a judicial review in the offing.

“The solution to the HIPs problem is very simple. The deadline for complying with the EU Directive to bring in the EPC is not until 1 January 2009 and so there is plenty of time. All DCLG need to do is to make all aspects of the HIP voluntary except the EPC, i.e. go one step further than they did last year when they made the HCR voluntary. Those vendors who believe that the cost of including some or all of the voluntary information in the HIP will be worth incurring to help sell their property will be free to do so and those who don't can just include the EPC.”

Boulger concludes, “If enough people believe the full blown HIP is such a good idea, the market will start demanding it. If not, sellers who think it will give them a competitive advantage will be free to offer their home with the full HIP. What could be fairer than that if you believe in a free country?”