The House of Lords Merits Committee's critical report on the government's Home Information Pack (HIP) Regulations was published this morning and has provoked a strong reaction from the government in defence of its position. The department for Communities and Local Government (DCLG) has issued an immediate press statement, to be followed by a "formal response" tomorrow. The statement from DCLG says:
"It is unfortunate that the committee only had the chance to hear evidence from a narrow range of groups, such as RICS and the National Association of Estate Agents, many of whom have vested interests in the current system - had they heard a wider range of views, for example from green groups or from industry groups who support HIPs, as we did for our consultation, then they may well have come to a different set of conclusions.
The government is pursuing the policy of HIPs because it will cut carbon emissions and improve the flow of timely information to consumers. We believe these objectives are widely shared across the country.
Our approach on Energy Performance Certificates (EPCs) has been widely welcomed by green groups and we make no apology for going further than European requirements and stating there should be a new EPC every time a property is bought or sold. We do not believe consumers will act on an EPC which could be ten years out of date.
We continue to believe that more and better information upfront will benefit consumers and promote competition. HIPs are only one part of wider reforms to improve house buying and selling and responsibility for ensuring consumers get a good deal rests with the professionals involved in the home buying and selling process who need to do better. HIPs will be a catalyst for that.
We are taking a sensible approach to Home Condition Reports (HCRs) and the area trials will provide valuable information on their benefits. The reason why HCRs were not made mandatory was because the industry was not ready and buyers would have had to pay for costly valuation inspections in addition to Home Condition Reports.
We continue to believe that HIPs will make a positive contribution to improving the operation of the housing market. We will be formally responding to the Lords committee tomorrow."
A DCLG spokesperson added: "Home Information Packs will come into force on 1 June. They are a long-standing manifesto commitment and have already been debated and voted on several times by both the House of Lords and the House of Commons. HIPs and Energy Performance Certificates will help homeowners cut carbon emissions and save on fuel bills, and will make the homebuying and selling process more transparent."
