24th February 2007

"I am aware of the content of several other organisations' submissions and they all lead to the same conclusion. Perhaps the most telling submission has come from the Council of Mortgage Lenders, which echoed some of our own concerns.
Their key messages are that:
The baseline research does not provide compelling evidence to justify the current HIP proposals;
HIPs is not the most efficient or cost-effective way to deliver EPC's;
There will not be enough energy assessors qualified by June 1st;
There has been no Regulatory Impact Assessment made of the current proposals;
Delays in obtaining local authority searches should have been resolved before HIPs were introduced;
Lenders will not link to the HCR register and valuation processes will continue as they are;
The current trials timetable does not allow sufficient time to deliver complete and robust evidence on which to proceed.
The CML also restated that automated valuation modules will be used in a limited number of cases and that while lenders are exploring the possibilities of using AVM' s in appropriate cases 'this is a complex risk-based decision and one which lenders will not rush into'. Contrast that statement with what DCLG say in the consultation document: 'The Home Condition Report has been designed...so that it...can be fed directly into lenders' automated valuation modules - thereby avoiding the cost of a separate lenders' valuation survey in a substantial number of cases'.
You may have seen that the popular press has begun another concerted campaign to get HIPs scrapped. This week the Mail got its teeth into the subject of the 'snooper society' and branded home inspectors as part of 'Gordon's Gestapo'. Meanwhile the Express splashed its front page with the headline 'Scrap New Tax on House Sales'. I would expect to see coverage in the Sunday papers.
Shadow Housing minister, Michael Gove has also re-stated that a Conservative administration will scrap HIPs when it comes to power. Given the government's current woes, this sort of publicity will be entirely unwelcome and I remain of the view that a change of tack on HIPs remains firmly on the cards, not only for practical but also for political reasons.
We now all have to wait and see how government and DCLG will react to the responses to the consultation. 'Interesting times', as they say in China..."
SPLINTA GROUP