PRESS RELEASE FROM SPLINTA

28th June 2007

MINISTER HAS ONE CHANCE TO STOP THE HIPS FIASCO

Gordon Brown's cabinet reshuffle sees the departure of Ruth Kelly from the department of Communities and Local Government. Ms Kelly has presided over months of chaos in the botched implementation of the government's home information pack policy and her erstwhile junior colleague, Housing Minister, Yvette Cooper, now has just one chance to halt the fiasco before August 1st when the scheme is due to commence. Freed from Kelly's influence and now with  potential cabinet responsibility, perhaps Ms Cooper will be able to sort out the mess that is HIPs.

Twice in the past year the CLG has been forced into embarrassing U-turns as the impracticality of the government policy has become evident. First they had to drop compulsory home condition reports, a key element of the HIP, then they had to admit there were not enough inspectors available to produce the energy performance certificates, now the driving force behind the packs, and to delay the start date from June to August.  The second U-turn resulted in new regulations that mean only properties with more than four bedrooms will need a pack to begin with. But estate agents are advising sellers that if they describe the property as having 'four rooms' instead of 'four bedrooms' there will not be any need for the £400 pack.

Nick Salmon FNAEA, head of the leading anti-pack lobby group, SPLINTA, said: 'Yvette Cooper is now left alone, holding the poisoned HIPs chalice, and has just one chance to put things right before August 1st. If she has the courage to recognise that the pack will do very little to improve the home buying process, the property industry would cease their near-universal opposition to HIPs and would help her to deliver energy performance certificates. But if HIPs is pushed through without further amendment Ms Cooper will find herself explaining to her new cabinet colleagues why this unwanted and inneffective piece of legislation is responsible for a Labour decline in the polls. Home owners will be furious when they find they have been forced by the Government into having to pay for a useless HIP.'

ENDS

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We have no mains power at all today.

When questioning the SEB repairman I further found out that woodpeckers have attacked the telegraph poles supporting the electric cables - the poles were being replaced as they were now liable to snap!
The office is still running OK as we have a generator running.

Simon

This week Graeme le Saux reflects on the Isle of Wight's thriving business and strong identity.

If you have the time you can always look at the program now on this link.

Simon

Please don’t forget Isle of Wight Homes when you think of selling your flat, apartment, maisonette, bungalow, chalet bungalow, terraced property, semi-detached house, detached home, stone cottage, thatched cottage, farmhouse - with land & without land, converted barn, or converted chapel.

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E-mail just in

Thank you so very much for keeping me informed.  I was still considering moving to the Isle of Wight until very recently, but have decided to move …………

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Always good to hear from people - we used to have lots of feedback when we set up the company 8 years ago, "viewers" are unfortunately now less chatty!

Simon

So HIP's are still going ahead. - and the Government is spending more of taxpayers’ money propping up the pack!

Dear Member,

A quick note regarding HIPs

As I mentioned in last week's E newsletter, following the Government's decision to delay HIPs, they have today (Monday) issued new regulations in respect of their proposed phasing in.

It appears that despite the barrage of criticism from Parliament, the media and many consumers, they are still intent on pressing on. I have not yet had an opportunity to fully read the new regulations but it appears that HIPs will come in three phases depending on the quantity of Energy Assessors. This is bound to cause even greater confusion and is not what we advised.

It is worrying that the Government do not appear to think that there needs to be further proper consultation on the new Regulations. This is something that we will be taking up. This is not appropriate in the context of an important policy and implementation exercise with huge ramifications for a major sector.

It is of great concern that the transitional approach, lasting several months has major loopholes, which unscrupulous agents will exploit to the full. Legitimate, professional businesses will lose out financially as a result. I am referring to the provision for a property to be marketed without a HIP but requiring a HIP to have been ordered. This enables agents who do not wish to pay for the HIP to order it and then cancel that order unless and until the sale is firm.

The proposal to phase HIPs in by bedroom size has already been roundly ridiculed and a proper analysis of the effect should have been properly carried out before adopting it.

We understand that Trading Standards are, at best, sceptical about their ability to enforce these provisions. Some authorities have stated publicly that they will not even try. This leaves a very unlevel playing field.

Problems that HIPs have not addressed are becoming daily more apparent.

There is growing evidence that unscrupulous managing agents will use the HIP to hold sellers and buyers to ransom over the provision of leasehold information.

A consultation on searches is going on at this very moment. Until these issues are sorted out we do not believe that the HIP will bring the benefits claimed and may even cause major consumer detriment and discontent.

The Association continues to strongly believe that EPCs should be decoupled as a matter of urgency and the rest of the HIP dropped.

More news anon!

Regards

Peter Bolton King

Chief Executive
NAEA

PRESS RELEASE FROM SPLINTA

11th June 2007

FOUR BEDROOM HOMES TO DISAPPEAR ON AUGUST 1ST.

The announcement today from the department of Communities and Local Government that Home Information Packs will be introduced from August 1st for homes of four or more bedrooms has been greeted with derision by the property industry and branded 'unworkable and unenforceable' by the leading anti-pack lobby group, SPLINTA.

Nick Salmon FNAEA, head of SPLINTA, said: 'There is no legal definition of what constitutes a bedroom and owners of four bedroom properties need only say 'three bedrooms plus a study' to avoid the need for a HIP. Government believes people won't do this because a four bedroom property is in theory more valuable than a three bedroom but if an agent describes the property this way after August 1st most people will work out the code. The new regulations are unworkable and unenforceable and there won't be a single four bedroom home left in the country on August 2nd'.

In a desperate attempt to give credibility to their failed policy the Government is subsidising Energy Performance Certificates  to the tune of £100 each for the first 5,000 properties having one done voluntarily in advance of August 1st. This move is undoubtedly being made to try to give work to Domestic Energy Assessors who have been making noises about sueing the Government for loss of earnings in the wake of the U-turn on May 22nd which saw the original June 1st implementation date postponed.

Nick Salmon commented: 'The Government has turned the HIP shambles into utter farce - and is spending another £500,000 of taxpayers’ propping up the discredited pack. Secretary of State Ruth Kelly is clearly only listening to the voice of the pack providing companies who stand to profit from HIPs. There is not a single major property industry body which believes that HIPs will benefit the home buying process and there is widespread scepticism that the new Energy Performance Certificate will do anything to halt climate change. The arrogance of this Government in ignoring constructive advice from those who really understand the property market beggars belief and it is the consumer who will pay the price.'

ENDS

HIPs

You will be all too aware that we have entered a period of great uncertainty so far as HIPs is concerned - and regretfully I can do little to shed light at this stage. Ruth Kelly's pronouncements have done nothing to create stability, if anything there is now more confusion than ever before. What is evident is that very few people outside of CLG or AHIPP seem to think that August 1st is going to happen as the date for introduction. I am hearing of trainee DEA's giving up, companies laying off staff, and of some HIP providers reconsidering their positions. It adds up to an almighty mess and we certainly cannot be expected to spend yet more time and money making provision for HIPs in this state of flux.

I also hear tell of companies and individuals setting themselves up to sue the government. I am not a lawyer but suggest their chances of success are extremely thin given the following section of the Housing Act 2004 (sections 155-159 relate to HIP provision) -

161    Power to provide for further exceptions

   The Secretary of State may by regulations provide for other exceptions from any duty under sections 155 to 159 in such cases and circumstances, and to such extent, as may be specified in the regulations.

  162    Suspension of duties under sections 155 to 159

        (1) The Secretary of State may make an order suspending (or later reviving) the operation of any duty imposed by sections 155 to 159.

        (2) An order under this section may provide for the suspension of a duty to take effect only for a period specified in the order.

        (3) A duty which is (or is to any extent) revived after being suspended under this section is liable to be suspended again.

The suggestion of a boycott of HIPs and support of the EPC has met with universal favour. There has not been a single message to me saying this is the wrong way to go. Much more on this shortly.

More news on HIPs as it comes to hand...

Kind regards

Nick

--

Nick Salmon FNAEA (Honoured)

Hope you are not totally bored by these updates!
Simon