June wedding set for Hips

The government has finally set a date for the introduction of the Home Information Pack (Hip) this is to be the 1st June 2007, the date is already causing some concern as it falls during the busiest season for Estate Agents.

The Council of Mortgage Lenders (CML), who claim vendors would flood the market before the proposed date in order to avoid paying up to £1,000 for the packs, said: "This will coincide with the housing market busy period, and could result in some unwelcome effects during the transition to the new regime."
It claimed that dates between October 2007 and January 2008 would be the best time for the system to be enforced.
The Government said it had balanced various views from across the industry in deciding on the date and believed it represented the "best balance".

A spokeswoman for the Office of the Deputy Prime Minister said it would provide certainty to organisations drawing up the packs and those training as home inspectors - of which the country will need at least 5,000. She said: "1st June 2007 has been chosen because having listened to views from across the industry we are satisfied that this represents the best balance between the various interests.
"It provides the industry with the time needed to ensure that Hips can be implemented smoothly and successfully and deliver real improvements for consumers."

The Royal Institute of Chartered Surveyors said the date would give certainty to the market, although it described the timeframe as "tight" since only a handful of candidates had qualified as home inspectors.
The Royal Institute of Chartered Surveyors spokesman Jeremy Leaf comments: "If we are to ensure that the reforms are implemented as smoothly and effectively as possible, we need to pull together to deliver sufficient numbers of suitably qualified, well-regulated and experienced practitioners who enjoy public confidence."
Announcing the date, the Government said that £1million a day is wasted on failed transactions as buyers spend money on valuations, legal advice and searches on transactions that ultimately break down. The packs are expected to cost around £600 plus VAT for the average home.

The Office of the Deputy Prime Minister said in its statement: "By providing key information at the beginning of the process, Home Information Packs will prevent waste and significantly cut the number of sales that fall through," Yvette Cooper, the Housing Minister, added: "Too many sales fall through because of delays and late information, wasting money and causing great stress for buyers and sellers, that's why we are introducing the Packs. We have been working with all parts of industry on the detail and this timetable will give them time to fully prepare".