NAEA dismayed by mid-December HIPs launch

The National Association of Estate Agents (NAEA) has expressed its dismay at the government’s plans to roll out the final phase of home information packs (HIPs) in just over three week’s time.

From the 14th December 2007 all residential properties being put up for sale will require a HIP. This latest announcement has come despite huge opposition from the industry and warnings that HIPs are seriously damaging the market.

Stewart Lilly, President at the NAEA, comments: “We are extremely disappointed with the government’s latest news. It seems hell-bent on pressing ahead with these ludicrous plans, which it has been warned time and time again are not the answer. Meanwhile, in giving such short notice for this final phase, the CLG has demonstrated its total lack of respect for the industry and homeowners alike.

“In the announcement today, the CLG made reference to an ‘independent report’ on HIPs which found ‘no evidence of impact on transactions or prices’. I would be very interested to see this report, as it directly contradicts our own findings and those by others in the industry. If the report is as positive as the government suggests, then why has a bigger deal not been made of these findings?

“Also today, the CLG highlighted the benefits it imagines there will be for first time buyers. But what about first time sellers? They are already faced with huge expenses as they trade up, most notably surrounding stamp duty. The cost of a HIP on top of this is an unfair and unnecessary extra. The other point to consider is that if first time sellers stay out of the market reducing the supply of more affordable properties available, then the situation will be even worse for first time buyers than it is at the moment.

“A small ray of light today is the decision to extend first day marketing until 1 June 2008. This will allow some breathing space for the market, but is in no way a solution to any part of the HIPs fiasco. The announcement on leasehold documentation will also be a slight help, but at the same time makes a mockery of the reported purpose of HIPs, which is to give buyers information upfront.

“The incompetence and irresponsibility of the government over HIPs seems to know no limits. Why can’t they admit they got it wrong and let us work with them to get things right?”