NAEA and RICS ask for review of HIPs

HIPSIt is fair to say that the Royal Institution of Chartered Surveyors (RICS) and the National Association of Estate Agents (NAEA) have never been the greatest admirers of Home Information Pack legislation. It is envisaged that this week they will combine efforts when putting their views forward to the Government to attack HIPS once again.

The latest stance is one of focussed criticism towards the searches within the Home Information Pack whilst seemingly and suprisingly asking for some aspects to remain and apparently agreeing that the planned Property Information Questionnaire (P.I.Q.) would be useful.

RICS’ director of external affairs, Gillian Charlesworth, said: “These legal documents (searches) must be taken out of the packs and left to buyers and their advisers to obtain at the appropriate time during the transaction.” RICS wants HIPs to be replaced with a voluntary report as per the Carsberg report.

Peter Bolton King, chief executive of the NAEA, said: “With the economic situation worsening and the property market still suffering, we are calling on the Government to take urgent action on HIPs.”

He said a simplified pack could include a sellers’ questionnaire, an improved Energy Performance Certificate and the Land Registry title and plan.

It maybe of interest that this is almost identical to what is planned to happen. At the beginning of September the assessment methodology RdSAP is due to be improved to make the Energy Performance Certificates more accurate and include further parameters that are not currently taken into account.

Also, recently the Government has entered into a consultation process around the planned format of the Property Information Questionnaire (P.I.Q.), which is due to be rolled out on the 1st January 2009.

Mike Ockenden, director general of AHIPP said:‘It is not necessary for purchase conveyancers to re-order searches, but even if they do, the cost savings from the inclusion of searches in HIPs far outweigh any additional cost. In other words, the inclusion of searches in HIPs save consumers money.

He said: ‘This is yet another attempt to play the ‘current market conditions’ card to derail HIPs. The inclusion of search information in HIPs allows potential buyers to be much better informed before they make an offer thus reducing the chance of transaction failure.

“HIPs as a product are not yet complete, but the issues in the process of buying and selling homes call for more information earlier and not less. It is disappointing that some professionals continue to try and sabotage a reform that is already starting to improve the home buying and selling process for consumers.”

In addtion to these comments it is worthy of note that both Local Authority searches and personal searches have reduced substantially in cost since the inception of Home Information Packs alongside evidence of quicker transaction times.

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6 Responses to “NAEA and RICS ask for review of HIPs”

  1. Many years ago the Government requested that NAEA and RICS design a Sellers Pack, both organisations refused. Maybe if they had we would not be in the mess we are in now.

    Maybe this is a time when NAEA RICS and IDEA get around a table for some brain storming,
    Both organisations should work with us, IDEA and the CLG

    Colin Bailey DipDEA MIDEA ANAEA

  2. Jason Grant FRICS CIOB Says:

    @Colin Bailey “DipDEA MIDEA ANAEA”

    May I first of all congratulate you on your Diploma, a qualification you are obviously proud of. My 16 year old son is currently doing 4 A levels aswell, so I understand the study you must have put in for the 1 you’ve achieved ; )

    They declined the offer as they dont agree with the principle. Labour wanted to use their professional name to give the idea credit. With the RICS and NAEA you have 2 professional bodies who have been dealing in property for a very very long time. They have stringent requirements for members aimed at being in the publics best interests, because of this they are very respected and know much more about the property market than any ‘director general’ of a company formed to sell a new idea.

    This is typical Labour interfering blind ignorance, creating ‘jobs’ and wasting everyones money.

    The sooner they get rid of these the better and leave the inspections up to the professionals, not people who have been on 3 day ‘crash’ courses on ‘surveying’.

  3. What utter tosh, What the introduction of hips has acheived is to highlight the monopoly the vested have had for years, it’s a fact hips do speed up sales, where by they use to take forever, too bad if the monopoly is broken, get over it, come to think of it, why don’t we open up the surveying industry and have a rival to Rics, and as for the energy survey, It makes no difference if the dea diploma takes 5 mins to get or 5 years it is not meant to be structual survey replacement, Hips have reduced sale costs for sellers and improved completion times………best labour idea for years!.

  4. Matthew White LLB DipDEA Says:

    I’m sorry Jason but I find it very difficult to take someone seriously when they state that the “NAEA … professional body who have been dealing in property for a very very long time. They have stringent requirements for members aimed at being in the publics best interests, because of this they are very respected”.

    With regards to your assertion that “they declined the offer as they dont agree with the principle. Labour wanted to use their professional name to give the idea credit.” I strongly suggest that you check your facts rather than rely on RICS spin.

    The introduction and roll out of HIPs has been one fiasco after another – one of which was caused by RICS. However, the principle is a good one and the benefits are there to be seen even with the flaws that we have in the current system. The move forward to an exchange ready HIP is what is both required by both the industry and public alike.

  5. The property business has been to cosy for years and the VIs don’t like upstarts like DEAs or HIs spoiling there party. They would still criticize us if we had done a ten year course. In any new business there may be rouges, but that does not mean we cant be given a chance to prove our worth.

  6. Many agents we supply HIPS to actually praise the Home Information Pack and what it achieves(not publically as not to rock NAEA line).

    HIPS have reduced Home Purchases collapsing by bringing Ownership details and important issues such as Covenants to the beginning of the buying process, we complete HIPS in under 7 days!

    The so called “professionals” A Solicitor missed out a Covenant on a client of ours £500k development, which basically meant he couldnt even fit Double Glazing never mind the huge extension to the property. He now has had to pay £17k for the right to do work on his own property, the “professional” solicitor now has to be counter sued which could take years to recoup the costs.

    When we researched the Covenant it was 2 pages long!Not a line or paragraph, and the Solicitor missed this. It was a pre-HIP Legislation sale, if a HIP would of been in place I doubt it would of been missed as the purchaser would have saw the “missed” covenant by the so called property professional.

    HIPS are a good product that stop purchsases collapsing at late stages, speed up the home buying process and have drastically reduced Search costs etc.. The only new thing is an EPC which aims to help the environment, reduce running costs which is essential in the current financial situation and is mandatory anyway for EU States.

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