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The Government is facing a legal challenge over plans to introduce controversial Home Information Packs (HIPs), it was confirmed today.
The Royal Institution of Chartered Surveyors (RICS) said it had started judicial review proceedings over the “failure” by ministers to carry out proper consultation in relation to HIP legislation.
A judicial review is a process through which interested parties can challenge Government decisions or legislation through the courts.
Teresa Graham, chairman of RICS, said the industry body had been left with no other option if it was to “protect the public’s property interests”.
The move will ratchet up further pressure on the Government ahead of a House of Commons debate tomorrow in which opposition MPs will attempt to derail plans for the introduction of the packs on June 1.
Under current proposals, sellers will be required to provide a pack which contains upfront information on the property and an energy performance certificate.
They are aimed at slashing the number of transactions which fall through late in the day while at the same time encouraging homeowners to cut their energy consumption.
But critics claim that the packs will deliver few benefits to consumers and will add to the cost of selling a home.
RICS also believes that the Government has not fully considered the wider impact that HIPs will have on the property market.
In response to the decision to seek a judicial review, Conservative housing spokesman Michael Gove said: “It is unprecedented for a professional body to challenge the Government in this way.
“It only emphasises how shambolic the Government handling of HIPs has been.”
He added: “It is still not too late for the Government to think again in the interests of stability in the housing market. I hope they will use tomorrow’s debate to acknowledge their mistakes.”
A spokesman for the Department for Communities and Local Government said:“This challenge is groundless, and we will proceed as planned with the packs being introduced on June 1.
“It is a shocking example of a vested interest wanting to water down important environmental information.”
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I agree with the answer earlier about the Scotish system. I have been in that unfortunate position. by buyer pulled out ion the day of contact. No reason given, but it cost me a lot of money. Believe we should change. Once you said you are goung to buy it should be fixed, unless you distauted the facts,(ie lied)
john, luton , england
The only way to make people fork out large sums for eco products that have a long payback period is for energy efficiency to affect capital value. The energy assessment part of HIPs should do this. As a Chartered Surveyor I am disappointed in the RICS stance and my message to them is 'not in my name!'.
HIPS will prevent time wasting vendors and create a more efficient market for purchasers.
Kate, Derby,
Simon, you are mistaken. The theory was that the survey would be in the HIP, but the mortgage lenders refused to accept that and so it was omitted from the requirements. As a result, the HIP is an extra up-front cost for sellers, with very few advantages for either buyers or sellers. It has just created work and another income stream for the Inspectors.
Jim, Bristol, UK
#Bill Goulding, Denton, Manchester
Thanks Bill for your post. I have to say you seem to know very little about 'selling'. The current house buying system is, or was, based on caveat emptor, ( let the buyer beware!), This is why sellers are 'hung out to dry' by the buyer, until he or she is satisfied by a thorough survey of the property or whatever. Here in Devon, the current gambit played by experienced
purchasers, is that they make 'an offer', which is agreed, but contracts are rarely now exchanged, until the very last minute ,( usually at completion). So the vendor can't sell "easily" to anyone else, but the buyers can, AND OFTEN DO!, walk away on the last day. As they have effectively kept your property 'off the market', while they look elsewhere and it hasn't cost them very much.
Personally, I would like to see the Scottish house purchase system used in England, as I think it covers most of he problems there are at the moment.
Keith Baigrie, Dartmouth, England
What happens if you sell privately? Or in an auction?
nadia, London, UK
Up until now, if three or four people wanted to buy the same house they would commission three or four surveys, all conducted by RICS members. When the law changes, only one survey will be required. So who will be the real losers here?
Simon Tooke, Lincoln, UK
Outlaw gazumping. Make the seller pay for the survey - but an 'energy rating'? This is a proposterous waste of time and money - well, the general public's money anyway. Of course Mr Brown will kick start his term as Prime Minister with a nice new boost to the coffers.
There are still some - indeed many of whom are published and respected scientists - that believe the Global Warming argument to be utter rubbish. In the last 10,000 years, the warmest periods occured well before humans started to produce large amounts of carbon dioxide. And besides, carbon dioxide is produced in far larger quantities by natural means: human emissions are miniscule in comparison. Volcanic emissions and carbon dioxide from animals, bacteria, decaying vegetation and the ocean outweigh our own production several times over.
I for one am sick of having dubious taxes (and make no mistake, this is a tax) jammed down my throat, while the benefit we get in return for our money dwindles. Bring back common sense.
Greg H, Berkshire,
Home inspection packs will improve the market and give the layperson who is buying a home for possibley the first time a chance to see the condition of the house before he/she puts in an offer. You would not buy a car without an mot so why not a house this is a much larger sum of money and the largest purchase we are likley to make. So to give people an informed option is defently the way faward It should also speed up the whole proccesss of buying and selling as you are informed from the start as of the condition, and will save a lot of wasted time and money.
Perhapes that is what the solicitors and estate agents want
or is it that the surveyors did not get it all there own way and get all the work, I bet if there was not a new prefessional comming on the market and the surveyors were to get the work then the RICS would be singing a different tune.And as for the Estate agents cant they see this will make life a lot easier for them. This is an idea that will work. Give it a chance.
Brian Maskell, Reigate, Surrey
The governments primary goal was to initiate the 'energy performance certificate' which was very much an EU directive, the rest of the so called HIP is very much smoke & mirrors. When you speak to most solicitors/estate agents/mortgage advisors/surveyors, you will clearly see the groundswell of opinion is that these 'HIPS' have not been implemented correctly or efficiently.
For the EPC example graphs which agents will need to display on their details, walk in to your nearest Currys and look at the first fridge/freezer you see...Clearly an opportunity to keep up with the Jones's and say you bought a house with an A rating!! An utter ill thought mess.
Russell Sullivan, Essex,
Why Why Do poeple jump in without checking the facts.Please let me answer just a couple. Mr Keith Baigrie, Dartmouth, Devon. Your house is safe the Energy certificate would not recomend that you change to double glazing as your house is probably listed and if you did have a thatched roof the isulation depending on the thickness of the thatch would probably be better than most other houses,not to mention the wooden beams which are safer in a fire than steel as they dont buckle.
Secondly the HIP pack is just bringing all the documentation to the front and making us all aware of the facts before we buy is that not what happens with the second most expensive purchase we make the car shurley we should wecome the clarity so we dont have to back out because the seller is trying to pull the wool over our unsuspecting eyes.Please check out all the acts you may get a surprise?
Bill Goulding, Denton, Manchester
The Government have completely lost the plot over this one. The pilot schemes of HIps have worked (more or less) because the packs were offered free to sellers. I heard an MP on TV this morning saying that the costs involved would have been incurred later in the transaction. That shows a complete misunderstanding of the process! The cost of searches etc is paid by the buyer - now it is being shifted to the seller. The costs of selling are now being increased. Also, if you get a poor energy rating on your house, you could find you can't sell - is that helping the housing market?
LynGooch, High Wycombe,
The property "professionals" who are against HIPs have had about 8 years to come up with alternatives. Why have they not done so before? Have they produced a single alternative to HIPs? No. They just say "go back to the drawing board". They have been strolling round the drawing board for 8 years, making the odd scribble on it but not giving any concrete basis for alternative proposals. And what alternatives are there? From what basis can one argue that it is not appropriate & sensible to get information available up front of agreeing to sell a house, rather than leaving it until after a deal is struck & a chain of sales depends upon whether or not a last minute survey or legal hitch causes the whole chain to collapse? The Home Condition Report should be part of the HIP - it can be! OK it's voluntary but if & when people realise it is the most useful thing that can be provided, maybe they will ask for it as buyers & maybe sellers will see it as a useful tool to help ease their sale.
Richard Large, Salcombe, Devon, UK
Whilst I'm not thinking of selling, I'm somewhat concerned
that my ancient Devon stone cottage overlooking the sea,
with probably No footings or dampcourse and old (original
and drafty) Georgian sash windows, which I'm obliged to
maintain as such, (NO plastic allowed here!). Together with
stone floors, with no damp proof membranes, and probably
fireproof risky exposed beams...( "health and safety!!"),
situated in a little lane, too narrow to get a fire engine down
or even , would you believe it!, a waste recycling collection
lorry. So we can't have those super big plastic wheelie bins
which everyone "has to have" (says Mr. Prescott bless him)
I suppose I can take it that my property is now probably
worthless?? It's a good job it isn't thatched.
Keith Baigrie, Dartmouth, Devon
If they are successful in changing this new law from 1st june, what will happen to all of those who have spent their hard earned money retraining and studying hard to be DEA's? Will the conservatives and those opposing repay this money???
E Hurley, weston super mare, uk
All the fuss, red tape and delays we have come to expect from poorly thought through legislation and absolutly NO benefit to the buyer. What was a good idea is now a watered down attempt with hapless and misguided "government spoksmen" now hiding behind the green veil. HIPs were nothing to do with green issues and are a very dangerous and costly way to introuduce energy performace certificates. Admit defeat, find another way to introduce EPCs and save everyone time, money and heartache. LET COMMON SENSE PREVAIL
Chris, Bristol,
The latest government paper offering guidance to the HIPs regulations actually says that a seller doesn't have to update the pack "even when it is of little or no practical use to a buyer". How does that help a buyer make an informed decision - which I thought was the whole purpose of the £600 up front cost? The RICS is right, its a shambles and needs to be challenged. Hopefully MP's will see sense tomorrow and reject the regulations to make the scheme inoperable.
Peter Edwards, Swindon, UK
RICS argue that the government has not conducted proper consultation in relation to HIP legislation? Does that mean the consultation process, papers and responses that I have read were made up by some backroom publicity team. Or does it mean that the consultation process did not give the result that RICS wanted.
Government is there to Govern, and that means making the right decision, not bowing to pressure from a self interest group, after all who gains from the status quo - could it be RICS?
Ray Powers, Birmingham, West Midlands
Last year, I put an offer in for a house in Epsom. After having spent almost a thousand pound for survery etc, my solicitor sent me a letter from the Council stating the property could be built on contaminated land. External consultants are cmommissioned to carry out an investigation and a conclusion has yet been reached. As such for first-time buyer, this is surely quite a risky move to go ahead so I decided to pull out and £1000 wasted.
Sales orientated estate agent will hardly tell you all the truths. But HIP will be a good mean of gathering information. Those who oppose the idea are people who make huge money from property sales related industry yet first time buyer like me will suffer badly.
Chee, Epsom, UK
This is being introduced without the required number of qualified inspectors on board. I am concerned that his will extend the time the property will take to sell.
What experience will the inspectors have?
What will be put in place to ensure the survey will not be open to abuce by those who are prepared to accept a financial incentive?
Who will be checking the inspectors?
Brian , Bpornemouth, Dorset
DCLG is being entirely disingenuous. This isn't a "shocking example of vested interests opposing HIPs" - DCLG knows perfectly well that "Which?(the Consumers Association), formerly a strong supporter of HIPs, has written to them stating This half-baked compromise will result in something that is of little value but of real expense to consumers and Which? cannot therefore continue to provide support."
And Trading Standards Officers, say they cannot see how HIPs will make the home-buying process easier and more transparent. We do not believe that the introduction of HIPs will prevent the process from remaining fragmented whilst EPCs will add extra costs .
By all means introduce Energy Performance Certificates to reduce carbon emissions but this doesn't have to be done expensively and unnecessarily through the HIP in its current form - everyone from major consumer organisations to trading standards officers agree on that - and are they to be dismissed as "vested interests"?
Vivien Aldred, Norwich, UK
There is only one thing that the government should be doing in relation to house-buying and that is to outlaw the third-world practise of gazumping !!
But somehow I think that certain vested interests will conspire to prevent this happening in my lifetime !!
Roger Clarke, Christchurch, England
An important point which is being overlooked is HIPs change the law from 'Buyer Beware' to the seller expressing 'Ultimate Good Faith' by the need to provide accurate information within the packs.
J E Kemp, stafford,
Excuse me but I thought HIPs were supposed to negate the need for all buyers to get a survey done. It appears that they're just a pointless waste of money to give your house an "energy" rating and hide it in a scheme that suggests it is something more. I think the government have forgotten WHY they were going to introduce these packs in the first place. If sellers are that bothered about sales falling through at the last minute, they could pay for a survey themsleves and fix everything before putting the home on the market. But it should be a decision for the individual.
Lindsay, Bristol,
All that is happening here is the 'old boys' don't want change! and that is what government is here to do.
RICS have had more opportunity than most to make this happen in a way they could accept, but no nothing but resitance, resistance, resistance to any change even if it is for the greater good.
The government has spent years trying to get this done and now its time to push ahead without RICS support.
Perhaps a lesson for those others not effectively partisipating in government cosultations.
Tom Whelan, Buckingham,
More stupid red tape and cost to the tax payer.
Is the workforce in place to carry out all that is required in the packs?
J BURTON, DERBY, Derbyshire
I have been a conveyancer for over 34 years. The packs are pointless. They will not give any improvement to the house buying process and in a number of circumstances will cause problems and even hardship (e.g. a shared owner selling his or her 25% share of a flat with a total market value of £90,000). No proper research could have been carried out and it is clear that civil servants have mis-led the politicians. There are better ways to introduce the EPC and the packs in the present form are not green as they are a waste of paper.
Barry Atkinson, London, UK
it seems that the powers with a vested interest in the status quo will stop at nothing to stop HIPs coming in and benefits the consumer.
The RICS and the National Association of Estate Agents were offered the opportunity of running the hIPs scheme but failed to take up the challenge. It now seem like sour grapes to moan.
The tories talk about how we all need to be aware of our carbon footprint but the one opportunity to do just that,at no cost to the taxpayer is being drummed out. HIPs will allow us all to know what our energy costs will be for our homes, in a timely fashion as we come to sell. Perhaps David Cameron's green credentials are just a little bit too much hot air - or is he hoping to use that to heat his home extension!!
Keith Gould, Hertford,
This must be stopped. Have your say and register your objection at petitions.pm.gov.uk.
Paul S, chelmsford, england