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Early Day Motion re Home Information Pack's
30 May 2006 08:58

Information just received from the National Association On Estate Agents (NAEA)

On Wednesday we were also notified that Michael Gove, Shadow Housing Minister, has tabled an Early Day Motion on Home Information Packs. I have set this out in full below.

This is a particularly interesting EDM given the cross-party support of the first 6 signatories (which always remain on the order paper), with the 2 relevant front-bench Conservatives, 2 well-respected Labour backbenchers, and 2 Liberal Democrats.  This will make it much more likely that MPs from all parties will sign the EDM, as it will not be viewed as a partisan issue.  I was pleased to see that the concerns raised are the same practical concerns that the Association has continually mentioned and clearly the signatories have read our press releases and briefing documents.

INTRODUCTION OF HOME INFORMATION PACKS 
Michael Gove

That this House expresses concern over the introduction of home information packs from 2007; notes that industry experts have advised that home information packs will add up to £1,000 to the cost of buying an average home and duplicate the ongoing need for a valuation or structural survey; believes that they will discourage potential sellers from putting their homes on the market; notes that smaller solicitors and estate agents may be adversely affected; observes that the Government will benefit from a potential £110 million VAT windfall from the packs and that the Home Condition Register could be used to conduct a council tax revaluation by stealth; questions the lack of a proper dry run and whether sufficient home inspectors will be properly trained by 2007; and calls on the Chancellor of the Exchequer to push for their implementation to be delayed or cancelled in order to protect the stability of the housing market.   
                                                                                                                   (2240)
Dr Ian Gibson *Mr Frank Field *Susan Kramer *Mr Jeremy Browne *
Mrs Caroline Spelman *Mrs Jacqui Lait, Mr Eric Pickles, Mr Robert Syms
Mr Greg Hands

 

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Two kind comments re houses we have recently sold on the Isle of Wight
20 May 2006 09:07

To Simon, Georgina, Pat & Jill,

Just wanted to say a huge thank you for all your help, advice & moral support through the sale of my home – not to mention the professional service!

You all made the process much easier for me & its much appreciated.

With kind regards
N.E.

Billingham,

Newport,

Isle of Wight.

May 2006

 

 

Hello Georgina

Thank you for taking the time to appraise  xx  …………….

 

Thank you also, to you and your colleagues for the work you did in the sale of Forest Way, I can't express enough my gratitude and thanks at having such a high level of professionalism from yourselves all throughout the entire process. Also, I'm pleased to have been able to pass on our old home to such a lovely couple as the xx’s.

 

Thanks again, and I look forward to dealing with you again in the near future.

Best wishes,  

R.F.

Winford,

Sandown,

Isle of Wight.
May 2006
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Update from our National Association of Estate Agents (NAEA)
20 May 2006 09:03
HIPS
No further news on the likely publication date of the revised regulations or whether we will get an opportunity for further discussion before they go back to Parliament. In the meantime we are sending a briefing document to Greg Hands MP who has a half hour debate next Wednesday in Westminster Hall. My understanding is that whilst other MPs do not have an opportunity to join in the Minister does have to reply.
This week we also sent out a Press Release explaining that if HIPs lead to a reduction in supply, prices will go up and this could put pressure on the Bank of England to increase interest rates. This has again produced media comment as has our normal monthly market survey.
19/05/06
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Home Information Packs (HIPs) - Press release from SPLINTA
10 May 2006 10:00

I thought you may be interested to read these reports - I will publish them, as & when they become available - Estate Agents across the Isle of Wight are very concerned.
Simon

PRESS RELEASE FROM SPLINTA

9th May 2006

PUBLIC GIVES THUMBS DOWN TO HOME INFORMATION PACKS

Public awareness of the government's planned imposition of mandatory Home Information Packs in June 2007 is rising, and with it, mounting levels of anger and dissent.

Home Information Packs are seen as offering little or no benefit to the home buying process. The content will not be trusted; the government are accused of creating another Stealth Tax and more bureaucracy; older people see the pack as a burden.

Having led property industry criticism of HIPs for five years the SPLINTA (Sellers' Pack Law is Not the Answer) campaign is now receiving rapidly increasing numbers of letters and emails from members of the public. Campaign leader, Nick Salmon says: "Ordinary people are starting to look at the Pack and the message is clear - the public do not want HIPs. The politicians may ignore the constructive criticisms of the property industry but they will find it harder to ignore the voice of the voters. HIPs started out as 'Prescott's Penalty' on the property market and now, with a new Secretary of State in charge, they will be 'Kelly's Calamity'."

Details of the campaign can be found on the website: www.splintacampaign.co.uk

A selection of written statements made to SPLINTA by members of the public in recent days:

NOT TRUSTING THE PACK

"Buyers and lenders are still going to feel they need to carry out their own surveys in order to have peace of mind."

"Nobody in their right mind as a purchaser would take the pack on face value, but would incur their own time and expense in checking out the facts, the local planning department and more importantly in having their own survey."

"I cannot see that an out of date survey, undertaken just for the purposes of a HIP and needing to be constantly renewed can be of benefit to any potential buyers and will cause great expense (and irritation) to the seller."

"This is a poorly thought out scheme. Why would any sensible buyer trust information provided by the seller? There are a lot of dishonest people out there. I would still carry out all my own searches and surveys when buying a house after this system was introduced. A HIP is not worth the paper it is written on."

"Neither lenders nor property purchasers will trust a report such as this and as it will only have a short shelf-life anyway it will actually hold up the property purchasing system - defeating the actual original purpose of this information pack."

STEALTH TAX

"I think this is just another way for the government to make money out of us."

"Not only are the HIP packs unnecessary and unfair but we now understand that VAT is to be charged on every pack prepared - how many people are aware of this? ... Another tax on the householder ... stamp duty; council tax ... where will it end?"

"I strongly object to the new buyers pack HIP and see it as another back-door tax."

"HIP's would not bring about any improvement in the system; would simply cost sellers more and line the pocket of the Treasury - the only beneficiary of the plan."

"I do not believe this will be of any help to either sellers or buyers. It is just another ploy by the fat cats and government to fleece us."

"Hips is a ludicrous idea, just another stealth tax."

"This is just another means of the government being able to control and spy on us as well as another means of tax. DIABOLICAL!"

"I would like to lend my support to the stop this government money-grabbing idea, presented under the guise of protecting buyers."

"Don't agree with it. It is another way of the government snooping and taxing us yet again."

"More of the Labour 'nanny state' and a licence to print money for supporters of this service. More intrusion into our homes by more 'inspectors'. Hips will be inflationary and whatever happened to 'caveat emptor' ?"

"I do not believe this is the way forward. There will be no ultimate gain or purpose for vendors or purchasers. It will only add additional expense. Another stealth tax from this government."

PENSIONERS

"Please, please, stop this nonsense - don't you think some of us pensioner home owners are being punished enough without having to worry about this now!"

"I am a retired person and at the moment am trying to sell my property and feel that the cost of the package will mean that I couldn't afford to keep it updated."

"Now looking to move on to retire in Somerset but due to health problems I cannot consider moving for at least a year. It will be a double blow if I have to provide this sellers pack too."

ENDS

Further information: Nick Salmon 07831 805455

Note to Editors:

The SPLINTA campaign is supported by over 1,400 firms of estate agents, surveyors and solicitor/conveyancers with over 2,750 offices in England and Wales and has called on Housing Minister, Yvette Cooper to shelve the HIP scheme. The group welcomes cost-effectively beneficial improvement to the home buying and selling process but opposes HIPs on the grounds that it that will not provide such cost-effective improvements.

SPLINTA CAMPAIGN

c/o Lurot Brand Ltd

37-41 Sussex Place

London

W2 2TH.

www.splintacampaign.co.uk

******************************************************************************

9th May 2006

Dear Supporters

1. We have had many firms joining in recent days and as this is the first Update for some, here is a brief synopsis of what new (and existing!) supporters should be doing to help the campaign. This is your campaign and it can only succeed if everyone makes the necessary effort.

a) Make other firms aware of the campaign - this boosts supporter numbers.

b) Make the public aware of HIPs and SPLINTA by circulating the Kirstie Allsopp/Phil Spencer letter to all clients - if you have not got a copy, email me and I will send it. The public are beginning to respond to us - see the press release below.

c) Send me a note of the email addresses for any media and press contacts you may have, particularly local press. You can also forward to them the press releases the campaign puts out.

d) Write to your local MP alerting them to HIPs and expressing your opposition.

I should also like to remind and apologise to everyone that with some 200 emails a day coming in I am often hard-pressed to give an individual response to each. Please be assured that if you send me information or advice it is always read and acted upon wherever possible.

2. Last Friday the NAEA Congress panel discussion, in which I took part, went extremely well from our point of view, with searching questions from the floor about HIP provision. It is clear that the companies providing packs do not have anything like all the answers and Mike Ockenden of AHIPP was reluctantly forced into admitting that to date there are just 130 qualified Home Inspectors. I still do not believe 7,000 is achievable within the next year, especially as I hear on the grapevine that there is a 30% dropout among candidates for HI training...

3. The Office of the Deputy Prime Minister, post-reshuffle, is now renamed 'Department for Communities and Local Government.', abbreviated to DCLG. The new Secretary of State is Ruth Kelly. Yvette Cooper remains as Housing Minister. One wonders how much it costs the taxpayer in new stationery and signage, this being the third name change in recent years: DETR, DTLR, ODPM, DCLG...

4. A number of supporters have been approached to take part in the 'Baseline Study' of residential sales for DCLG and will be copying SPLINTA in on their results. As to the 'Dry Run' there is still no news of anything official. Only that AHIPP will be conducting their own dry run in as yet unannounced cities in coming months. Questions remain about the validity of a commercial organisation running such a trial - and with so few Home Inspectors qualified how will they test the Home Condition Report properly? It's a farce in the making and we shall be drawing attention to it as time goes on. If anyone is approached to take part in the AHIPP - or an eventual DCLG dry run, please let me know.

5. I am compiling a list of the current or immediate past occupations of trainee Home Inspectors - specifically those without any connection to surveying or property construction. If anyone can offer evidence on this topic I would be grateful to hear from them.

6. Ian Liddell-Grainger's Bill to abolish HIPs is set down for Second Reading on May 12th. It is highly unlikely to be heard and will therefore be re-scheduled for Reading on a later date. There is nothing unusual in this and it will continue to be a point of focus for MP's. I am aware from a number of sources that the renewal of the political debate on HIPs, and the Conservative's pledge to scrap it, is discouraging potential Home Inspectors from entering training. Some have even quit the course. We shall maintain the pressure.

7. There have been ongoing problems with the campaign website - entirely the fault of Pipex, our server host. A temporary site is up and running and will be refined in due course. On-line registering of support to the campaign is now possible again - providing that the resultant error message is ignored! The message does actually get through to us.

8. There follows the text of the press release issued today. Please copy it to your media contacts.

Kind regards to you all,

Nick

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Beware of the new "Home Condition Report"
08 May 2006 17:06

I managed to speak to a surveyor who is carrying out the new Home Condition Report "training" for the Home Information Pack (HIP). He said that he wouldn't be happy to do a report for a friend to rely upon!

The trainers expect about 90% of all houses to be given a "1)" - i.e. a pass

An example given In the training room was that they were showed a picture of a 20 year old flat roof with blisters & ponding, that was likely to fail at any time - but with no sign of leaking. This would be given a - "1)" - i.e. a pass!
Everyone in the room gasped as they could not believe it
but the trainer said - the flat roof was not leaking, it is not their job to advise.

Another new test is to check that all the taps work correctly i.e. water runs out of them. If only cold water runs from a hot water tap it still passes with a "1)" as it is working - it is not their job to test or advise but rather check that water comes out of the tap!

It will surely make a mockery of the "Home Condition Report".
Simon

 

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