May 26 2006
Property businesses are being encouraged to sign up to take part in a dry run for Home Information Packs to speed up the benefits for consumers – Housing Minister Yvette Cooper said today. The Minister warned that some estate agents and other professionals were in danger of being left behind as innovative organisations take the lead in transforming home buying and selling to provide a better service for consumers.
Yvette Cooper said:
“Over 150 organisations have said they are interested in joining the next stage of the dry run this autumn and 49 have already signed up. It’s an invaluable opportunity to test and improve the service they can offer to consumers.
The level of positive interest and involvement we are receiving so early on in the HIP initiative should worry those who are dragging their feet. Miss this moment and they risk being left behind by a fast changing market.”
HIPs – which are being introduced 1 June 2007 - have been designed by the government to cut waste and costs for buyers and sellers which currently adds up to £1m a day. They will:
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Ensure first time buyers, struggling to get their first foot on the property ladder, get HIPs for free
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Cut waste and duplication by preventing several prospective buyers paying again for the same searches and surveys when sales fall through.
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Provide quality reliable information at the beginning of the process and cut failed transactions which currently waste £350m each year.
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Include energy performance information in the Home Condition Reports, preventing the need for a stand alone survey.
The cost of a HIP will be set by the market – not Government. Adding up what the market is currently charging for existing products similar to the components of a pack suggests a cost of around £600-700 plus VAT but market watchers are predicting that costs will be driven down by competition.
Yvette Cooper said:
“Competition will have a big impact on the market - ASDA, for example have just announced they are entering the estate agency market and their offer includes a free Pack.
As we move towards the dry run, consumers will demand competitive offers from their suppliers - industry must rise to this challenge."
The programme also offers new career opportunities with a Diploma in Home Inspection, Currently 4,400 people are in training, many of whom are surveyors adding the qualification to their existing portfolios.
The length of training required depends on previous experiences but the average existing surveyor can be trained in around 5 days plus the time taken to assemble a portfolio of work. A Government report published today, shows that between 5,000 and 7,400 Home Inspectors are needed by 1 June 2007. See - Report on the Number of Home Inspectors Required from Introduction of Home Information Packs.
Details of the contents of Home Information Packs will be placed before Parliament as secondary legislation in June 2006 and an assessment, showing the impact of this new legislation will be published alongside.