Government accused of U-turn over home information packs

Ministers accused of U-turn over home buyer packs

Ministers accused of U-turn over home buyer packs

The government was accused of making a major U-turn last night when it announced a key plank of the new home information packs (Hips) would be delayed.

The home condition reports (HCRs), which would provide an assessment of a property’s condition to prospective buyers, were due to come into force with the packs next June.

But housing minister Yvette Cooper yesterday announced their introduction would be on a “market-led basis” from the beginning – essentially, that they would be voluntary.

The move was greeted by critics of Hips as evidence that they are unworkable – the Conservatives have launched a campaign against the packs, arguing they add unnecessary effort, cost and red tape to the already stressful process of buying a house.

Homeowners would have to compile the packs, costing up to £700 for an average home, before selling their house, including information on the property and legal documents.

Ministers insist they will speed up the process of buying a home and stop people putting their homes on the market if they are not interested in selling, but critics warn buyers will still need to pay for valuations and surveys.

Last night, shadow housing minister Michael Gove warned that following the delayed implementation of HCRs, plans for Hips were now “a complete shambles” – as was much of the government’s other legislation.

“After the U-turn on police mergers and the delay over identity cards, this is the third Whitehall farce in a week.,” he said.

“The Labour government are slowly discovering that this expensive and deficient red tape from John Prescott’s days simply will not deliver the improvements that the housing market needs.

“The government should abandon the whole scheme and consult afresh rather than move ahead with a vanity project to save ministers’ faces.”

In a statement released yesterday, Ms Cooper said the government was still committed to making HCRs compulsory parts of home information packs, but said it wanted to “encourage market-led take up first”.

This would allow “a more flexible roll-out that responds to consumer demand and the results of further testing”, she said, noting concerns that there were not enough inspectors in place to carry out the reports by next summer.

Liberal Democrat local government spokesman Andrew Stunnell welcomed the announcement, saying: “There can now be a realistic assessment of how they will work and what snags there may be.”

However, the director general of the Association of Home Information Pack Providers (AHIPP), Mike Ockenden, said the delay was “wholly unnecessary” and said it would continue with plans to role out Hips from later this year, which would include an HCR.

“The fact that the energy performance certificate (EPC) is still mandatory means that an inspector will need to carry out the report,” he added.

“We strongly believe that the HCR will prove a very attractive option for the vast majority of sellers, providing huge benefits at low cost.”