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Last Friday, the Communities and Local Government (CLG) published its latest update on Home Information Packs (HIPs).

Within the document the Department states that the Government commissioned independent economic research and advice to analyse the impact of HIPs and its interaction with current market conditions.

The National Association of Estate Agents (NAEA) however, has severe reservations about aspects of this research carried out by Dr Peter Williams of European Economics.

Stewart Lilly, President of NAEA, explained: "In particular the main conclusion is that there was no evidence to show that HIPs were affecting transactions or prices and that the market slow-up was due to the economic and financial situation. However, it was accepted that HIPs must have had some effect, although it is really too early to be certain. This begs the question of how a decision to proceed can therefore be made?

“It is disappointing that Dr Williams did not talk to the Stakeholders nor take into account or discuss our recent members’ survey. In my opinion his research seriously underestimates the impact of people ‘testing the water’ and it is incorrect to consider them time wasters as we all know that this is clearly not the case.

“I do not believe that a correct analysis of stock levels has taken place and there appears to be no attempt made to check listings of three or more bedroom properties against smaller ones which would, in our opinion, have shown a clear differentiation and proved that HIPs are affecting supply.

“It is probably true that transactions and prices have not been affected. It is far too early for this to happen and will occur as a result of a reduction in instructions.

“My own conclusion is that the Government has proceeded on the basis of a report that did not fully look into all the market conditions and in any case accepts that it is too early to come to many firm conclusions."

Amazingly, the CLG update again goes on to say that the HIPs roll out has gone smoothly. Stewart Lilly argues that this is clearly a ridiculous statement to make. He continues: “As we stated after the last piece of spin, how can the term ‘smooth roll out’ be used when the Minister herself has had to accept that the time taken for local searches is very patchy and that certain water companies are taking weeks to produce water searches."

"The Minister has also had to drop management information from the pack having accepted our comments that this is really difficult and often costly to obtain."

The NAEA also maintains that it is somewhat ludicrous to say that HIPs will speed up the process if much of the required information is not available and many conveyancers are not accepting the local search.

Concluding, Stewart adds: "It is a real pity that the Government has consistently refused to discuss real ways of improving the home buying and selling process. Contrary to what Government seem to suggest, agents are keen to see improvements, but HIPs are just not the answer."

by: Editor

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