James Arbuthnot MP
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MP calls for scrapping of home information packs
April 23, 2009
An MP is calling for the controversial Home Information Pack (HIP) to be scrapped.
North East Hampshire MP James Arbuthnot warns the already fragile housing market will only get worse following the introduction of complex and expensive new HIP rules.
From April 6, the government brought in new HIP regulations.
Among them is the cancellation of the ‘first day marketing’ provision, which allowed sellers to market their home if a HIP had been ordered but had not yet been completed.
But Mr Arbuthnot warned this would further slow down an already stagnant market.
He is also concerned that the seller must now include a Property Information Questionnaire.
“Difficult questions about serious concerns that may affect the value of the house such as past dry rot or damp, insurance claims, experience of flooding, and whether past alterations had official permission can now be sidestepped with a simple ‘don’t know’, which does not help the buyer,” warned Mr Arbuthnot.
“It also puts the seller in the difficult position of having to supply information which may be extremely hard to obtain.”
Mr Arbuthnot, whose constituency covers Eversley, Fleet, Harltey Wintney, Hook and Odiham, is also concerned that homeowners will now be fined £200 if they do not follow the new rules.
“Recent research has found that there is little public knowledge about or interest in HIPs, that the industry thinks they are a waste of time, that they duplicate costs and that buyers are not bothering to consult HIPs,” he added. “Ministers have emergency powers under the Housing Act to suspend HIPs, but so far have not used them.
“In extremely difficult economic conditions, I believe that Home Information Packs have damaged the housing market and discouraged sellers and now it seems that things may get even worse.
“Sadly, you cannot trust the contents of a HIP and these regulations will lead to yet more wasted time and expense and little improvement in the state of the housing market.”
Mr Arbuthnot said he would like to see HIPs scrapped.
“We need practical, common sense measures in place to get people buying and selling homes again and to kickstart the economy,” he added.
“If ministers really wanted to help homeowners, they would use their emergency powers to suspend HIPs and cut back the needless red tape associated with the selling process.”
However, the government says the new HIP regulations will ensure that common questions are answered at the beginning of the process and before prospective buyers incur any costs, avoiding surprises later on.
It also hopes the questionnaire will be particularly helpful to first-time buyers with little experience of buying a home.
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