Legal action launched against Hips
The Royal Institution of Chartered Surveyors (Rics) has launched an 11th hour attack on Home Information Packs (Hips) and is taking the government to court over their introduction.
Rics has launched a judicial review against the department for Communities and Local Government (CLG). The surveyors’ body claims the department failed to hold a proper consultation on the scheme.
Hips, which require anyone marketing a property in the UK to provide specific information, come into force on June 1st.
With their introduction imminent, Rics and other professional bodies warn of insufficient surveyors to support Hips, risking a possible ‘bottleneck’ in the property market. The latest criticisms reflect the government’s failure to persuade the industry of the value of Hips.
Launching the judicial review against the CLG, Rics cites the “failure to carry out proper consultation prior to implementing new legislation to bring in Hips by the government.”
“Rics has not made the decision to commence judicial review proceedings lightly. We have exhausted all the alternatives and greatly regret that we were left with no other option if we are to protect the public’s property interests,” said Teresa Graham, chairman of Rics’ regulatory board.”
The CLG is confident Hips will come into force as planned on June 1st.
The Association of Home Information Pack Providers has also defended the pack’s value.
Director general Mike Ockenden said: “For all of those concerned about climate change, the introduction of Hips will not only help to greatly improve the house buying and selling process, but will include an Energy Performance Certificate (EPC), which will play a pivotal role in improving the energy efficiency of our homes and as a result, significantly reduce carbon emissions.”
He said it was “difficult to understand” why Rics were choosing to take this action now, especially as it is training surveyors to help deliver the packs.”
The Conservatives failed to scrap Hips at the last minute today, after MPs rejected a parliamentary motion tabled by Tory leader David Cameron.
A spokesman from the CLG pointed out the House had already approved Hips on several occasions and was confident MPs would again endorse the packs.
The deputy prime minister John Prescott criticised the Conservatives’ opposition to Hips, claiming it contradicted their new-found green credentials.
Labour’s 1997 manifesto contained a manifesto pledge to introduce some form of Hip. Originally, the measure was designed to shift costs from buyers to sellers, in a measure intended to support first-time buyers.
The government maintains Hips will only cost sellers £300 to £400. However, some within the industry claim the true cost could be higher.
Amid criticisms, the government removed home condition reports from Hips last summer, prompting accusations it had neutered a core point of the pack.
Hips will now contain title deeds, details of local authority searches and an energy performance report, which grades a property’s energy efficiency.
Rics claims there are not enough trained professionals to conduct the energy assessments. Some 3,000 will be ready by June, but Rics argues 5,000 are needed to prevent a bottleneck.
