Agents are routinely breaking the law on HIPs, with half of all home sales going through without a HIIP in place, a survey by Spicerhaart has found.

The agent says it studied transactions in the five weeks following the changes to first day marketing that came in on April 6, and found that 52% did not have HIPs.

It says that there is a “systemic failure to comply with HIPs legislation”.

Meanwhile, the answer to a question in Parliament has revealed that local authorities are turning a blind eye to HIPs avoidance. So far, they have failed to issue one fine, despite having powers to do so.

Also noticeable is the surge in ‘coming soon’ advertisements in local newspapers where estate agents give details of new listings without divulging the address, but which urge house hunters to contact the agent for more information.

Shadow housing minister Grant Shapps said: “We should not be surprised that half of all house sales are now disregarding this pointless and expensive red tape. This widespread derision and evasion of the regulations proves how HIPs are deeply flawed.

“We don’t condone breaking the law. But rather than feebly attempt to enforce this bad law, these regulations should just be scrapped.

“Town hall trading standards rightly have more important priorities than persecuting struggling home owners during a recession.

“Conservatives will scrap Home Information Packs outright. If ministers really wanted to help home owners, they would use their emergency powers to suspend HIPs and provide a shot in the arm to the ailing market.”

Estate Agent Today

29.06.09

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HIPs are not the cause of the collapse in new instructions, the new housing minister said this week, putting himself on a collision course with the industry just days after being appointed.

John Healey – the ninth housing minister in the last 12 years and the fourth in less than two – said in a Commons debate that the fundamental cause of stagnation in the housing market was the lack of access to credit.

He went on: “There is no evidence to suggest that Home Information Packs have added to the difficulties. On the contrary, a survey by Connells estate agents showed that sales with HIPs get to exchange six days earlier.”

Citing a body called ICM, he said it had “highlighted the fact that more than eight out of 10 first-time buyers in particular want more information, and HIPs are part of the answer”.

But, in a separate move, the NAEA put out its own statement, saying that HIPs are deterring home owners from putting their property up for sale, stunting market recovery.

A survey of NAEA members revealed that one in five believed new instructions would rise by20-25%, and one in ten believed that the number of people selling would double if HIPs were suspended or abolished.

The survey also found that 91% of agents said that customers paid little or no attention to the Packs anyway.

In April, the average NAEA estate agents had 67 properties available to sell, compared with 84 in April 2008 and 100 in December.

Peter Bolton King, chief executive of the NAEA, said: “The housing market has seen a number of positive signs in 2009, particularly an increased demand for property and more sales being completed.

“However, this will be unsustainable without a steady supply of housing. HIPs are controversial and in the NAEA’s opinion, relatively useless. That is bad enough, but these figures suggest that professional agents believe that they are actively harming the market. 

“The figures are significant because of fears that housing market recovery is being stunted because increased demand for property among buyers is not being matched by a supply of houses for sale.

“The Government should look at scrapping the Packs, at the very least until the market has recovered. At that stage they should be reviewed. The NAEA would be happy to offer its professional opinion as to the best way forward.”

 Estate Agent Today

The property industry is wearily preparing to do business with yet another new housing minister – the fourth in less than the last two years, and the ninth in 12 years.

He is John Healey, who becomes Minister of State (Housing), Department for Communities and Local Government, succeeding Margaret Beckett.

Beckett held the post for just eight months and resigned last week apparently because she was not offered a promotion from the non-Cabinet housing role.

From within the industry, she had received criticism for her apparent lack of engagement with the housing sector.

HIP opponents also complained that while criticising Home Information Packs, she had refused to suspend them, instead choosing to implement the April 6 changes.

Beckett’s immediate predecessor as housing minister, Caroline Flint, also resigned last week, in protest at not being promoted from her job as European Minister.

Flint’s own predecessor as housing minister, Yvette Cooper, the housing minister who introduced HIPs, fared better. Despite her and her husband, Ed Balls, having been caught up in the MPs’ second homes row, she has been promoted. She is now Work and Pensions Secretary.

The new housing minister is MP for Wentworth in South Yorkshire, which he has represented since 1997.

As the new housing minister, his will be a non-Cabinet post, although he will be able to attend meetings. The status of housing minister also continues to annoy those in the industry, who cannot understand why it is not a full Cabinet role, given the importance of housing to the economy.

Healey faces any number of immediate challenges, including the lack of mortgage lending, historically low levels of transactions, the misfortunes of developers, and what to do about HIPs,  and has already been warned that he needs to get a move on.

The National Housing Federation’s chief executive, David Orr, said: “The country is facing an unprecedented housing crisis. The number of new homes being built this year is expected to slump to an 88-year low, while waiting lists for affordable homes have hit record levels.

“Clearly the new minister must get Britain building again.

“Mr Healey must also look at ways of getting the nationalised banks to lend to the thousands of people who are currently being refused mortgages for shared ownership properties – despite having good credit records.”

Healey was formerly local government minister, and is unclear whether he will still hold this remit.

Previous roles include a stint as financial secretary to the Treasury, and as under-secretary for adult skills at the Department for Education and Skills.

Before entering Parliament, he worked with charities for disabled people before becoming campaigns director for the TUC from 1994 to 1997. He has also been a part time tutor at the Open University's Business School.

Estate Agent Today
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