Home Information Packs

Oral Answers to Questions — Communities and Local Government – in the House of Commons at 2:30 pm on 2 June 2009.

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Photo of James Duddridge James Duddridge Opposition Whip (Commons) 2:30, 2 June 2009

What her latest assessment is of the effect of home information packs on the housing market; and if she will make a statement.

Photo of Iain Wright Iain Wright Parliamentary Under-Secretary (Department for Communities and Local Government)

Independent research into the impact of home information packs was undertaken by Europe Economics. The implementation of HIPs is being kept under review and an evaluation of the HIPs programme is currently planned for 2010 by updating "The HIPs Baseline Research Report".

Photo of James Duddridge James Duddridge Opposition Whip (Commons)

In another survey, 89 per cent. of professionals said that HIPs would not benefit buyers. In the age of rhetoric and of trusting professionals, why should we believe what the Government say, not the professionals?

Photo of Iain Wright Iain Wright Parliamentary Under-Secretary (Department for Communities and Local Government)

I dispute what the hon. Gentleman says. Professionals are telling us that information is vital, and giving buyers information about probably the biggest purchase in their lives benefits the whole home buying and selling process. Roger Wilson of Connells, one of the country's largest estate agents, has said:

"Knowledge is key when it comes to building confidence for any big purchase and prospective home buyers need to do their research and gather as much information as possible. The new PIQ, EPC and other elements of the Home Information Pack mean buyers will have more information about a home from the very first day it goes on the market."

Professionals are actually welcoming the HIP.

Photo of Andrew Miller Andrew Miller Chair, Regulatory Reform Committee, Chair, Regulatory Reform Committee

Professionals such as LMS in my Constituency are proud of the work that they do in providing HIPs to many people. Will my hon. Friend take this opportunity to say how he intends to continue his drive, after the review, to relieve the downward pressure on conveyancing by moving towards a system of electronic conveyancing?

Photo of Iain Wright Iain Wright Parliamentary Under-Secretary (Department for Communities and Local Government)

My hon. Friend makes an interesting point. Electronic conveyancing can speed up the process hugely. We remain committed to ensuring that we can simplify and streamline the home buying and selling process. Some £1 million a week is wasted in abortive home purchases and sales, and that can cause heartache to the people involved and disruption to the economy, so we remain committed to HIPs. We want to provide information up front to allow buyers to make an informed choice.

G

Interesting how Ian Wright manages to make the leap from conveyancing, which has always been a requirement for a house purchase, to his total commitment to HIPs, completely side-stepping the point that it is electronic conveyancing, not HIPs, that would in fact speed up house-buying, and save...

Submitted by Garry Lelliott Continue reading

Photo of Angela Watkinson Angela Watkinson Opposition Whip (Commons)

Further to the Minister's response to my hon. Friend James Duddridge, will he guarantee that the review will include consultation with estate agents up and down the country to assess the level of demand from house buyers for home information packs and to assess the number of packs that have been produced but never used, and the cost involved? If the demand is extremely low, as I predict it will be, will he at least make them voluntary and not a statutory requirement?

Photo of Iain Wright Iain Wright Parliamentary Under-Secretary (Department for Communities and Local Government)

No, we have no plans to make them a voluntary requirement. The hon. Lady touches on an important point. Sometimes, buyers and sellers—particularly buyers—do not get to see the HIP. That is not in anybody's interests. One key idea that we are trying to push forward, along with the industry, is that estate agents and others involved in the home buying and selling process should ensure that home buyers see the HIP. As I said in a previous answer, information is key. This is the biggest purchase that someone will make and it is important that home buyers get to see the home information pack and make informed choices accordingly.

B

For a HIP to have value to a purchaser it has to contain information. Far too many vendors fill their answers with "Don't Know" or "Purchaser to seek professional advice" or they are blank. The legislation should force a full disclosure, and have enforceable penalties and compensation to purchasers for incorrect or misleading information. Lenders are the worst - when it comes to selling...

Submitted by Bill O'Dell Continue reading

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