Conservative Party's Policy on home information packs poses threat to first time buyers

Great news about the stamp duty, and though there will always be those who are never pleased, surely the industry as a whole must take time to acknowledge this move as a welcomed measure and one that will clearly benefit the first time buyer.


Leaving to one side the politics of the decision, it is clear the Government is keen to do all it can to maintain the improvement seen within the property market.


Now help has been given to the first time buyer, and as this will make it cheaper for the first time buyer to move, we must all do all we can to ensure Grant Shapps is not allowed to undo all of this good work by proceeding with his illogical policy of scrapping home information packs.


By doing so the money the first time buyer saves on stamp duty would clearly be lost or at least diminished by the added cost the first time buyer would face in having to pay for property searches. As we know the first time buyer saves on this cost, as the searches are included in the HIP.


The removal of the HIP would also see an immediate rise in the legal cost of moving home with certain personal search companies itching to put prices up the moment the HIP goes. Buyers including first time buyers could see legal cost increasing by at least £100 in some areas.


Now the first time buyer has an actual and tangible incentive to proceed let us not allow the political misguidance of the Conservative Party to cause damage to a fragile but fast improving property market.

Upturn in property market questions validity of Grant Shapps' policy on HIPs

For the past year or so Grant Shapps and the other anti-HIP lobbyists have continually banged on about how the home information pack should go because it is deterring homeowners from placing their property on the market. Grant Shapps claims the £199 pr so presently charged by many for a HIP is causing homeowners to think twice and has as a consequence caused the housing market to stall.


Indeed, it was only a couple of days ago that the National Association of Estate Agents was calling for a suspension of the HIP because it was not helping first time buyers. All very bizarre when the first time buyer pays nothing for the benefits of the HIP.


Those who support the HIP have never understood the logic behind this argument and have for sometime now looked upon this rhetoric as nothing other than unfounded and often inexplicable political sound bites.


Claims that the property market was being brought to its knees by the humble HIP have always been viewed by rational property professionals as ridiculous in the extreme, and with news breaking this week of the property market returning to normal, it is hard to see where this will leave the credibility of those who have consistently voiced such nonsense.


According to housing intelligence group Hometrack, Estate agents in England and Wales reported a 5.6% jump in the number of properties they had on their books during March,


The group said the supply of homes on the market had already jumped by 10.2% during the first two months of the year, compared with a rise of only 7% during the whole of 2009.


Richard Donnell, Hometrack's director of research, said: "Talk of improved market conditions and prices returning to near peak levels in some markets is encouraging a growing number of households to sell their properties. Many registered buyers are also sellers, and as they gain the confidence to move, so they need to put their homes on the market. Overall, it seems that we are moving from a sellers' market back towards something more akin to normal market conditions."


Hopefully evidence of this that is devoid of self interest bias will mark an immediate end to the calls for the HIP to be ‘scrapped’ and will serve to vindicate a beleaguered industry of well intentioned property professionals.

Does the National Association of Esate Agents truly care about the first time buyer?

The National Association of Estate Agents (NAEA) called upon the Government today to take measures in tomorrow’s budget to help first time buyers get a step onto the housing ladder. On the face of it a good call as we would all like to see help given to the first time buyer. However the measures suggested highlight an alarming lack of understanding of the basic and fundamental mechanics of home buying. The statement issued also raises the question of whether the view of the NAEA is fully representative of that of the majority of its members.


Reduction in the stamp duty threshold, and the introduction of a home buyer credit scheme similar to the one introduced in the US, are as one would expect the headline statements of this annual and very predictable press release. Peter Bolton King, chief executive of the National Association of Estate Agents, enlightens us with the statement:


“First-time buyers are central to a properly functioning housing market so it makes good economic, social and political for Mr Darling to consider a one-off stimulus for first-time buyers, similar to the incentive scheme in the United States'


Nothing startling here, though the statement goes on and calls for home information packs to be suspended? Why I ask, when the HIP, as Mr Bolton King knows full well, or should know given his position, actually benefits the first time buyer, and better still, costs the first time buyer absolutely nothing! In fact the first time buyer by reason of the HIP pays less for the legal work involved in buying the property!


I also question whether those running the NAEA posses a clear mandate from their members on the issue of the HIP. There is a growing swell of support amongst agents for retaining the HIP, and as the NAEA has yet to poll its members on the HIP, the credibility of a policy statement of this type must be seriously questioned.


Moreover, it seems there is little communication between the so called ‘wise men’ heading the NAEA as it was not too long ago that the chairman of the NAEA was publically writing how good the HIP regulations were because they provide well needed consumer protection!!


It is clear from this inconsistency in approach, the lack of clear mandate, and the recklessness of not recognising the benefit of the HIP to the first time buyer, that the call by the NAEA to suspend HIPS can only be viewed with great suspicion. Perhaps this can only lead one to conclude that the statement asking for the HIP to be suspended is politically motivated.

Home Information Pack knocker changes strategy

The anti-hip brigade argues and has argued for sometime that the home information pack acts a bar that restricts the flow of property available for marketing.


I have never understood this argument. Nor have I ever seen any independent evidence to support this contention. In fact all anecdotal evidence would suggest otherwise. The majority of agents with whom I speak are happy with market conditions and are even happier that the customers marketing their property are serious about selling. This has saved cost on marketing and has generally I am told led to a far better return on marketing expenditure.


Deep down I consider most agents do not believe in this argument, and as previously reported believe the time has come to acknowledge the HIP is here to stay and to see what can be done to improve the HIP.


Indeed it was only yesterday that one of the most vocal of opponents Nick Salmon wrote that he is now looking for the reinstatement of first day marketing as he beginning to believe the HIP will be around in the future.


He is calling on agents to hedge their bets on the possible result of the general election by signing up to his campaign’s petition on the Number 10 Downing Street website. The petition seeks the restoration of ‘First Day Marketing’ and has already attracted over 1,400 signatures.


Knowing some agents view the HIP as an established and welcomed stream of revenue and I believe this will be shown to the case if as I understand the case to be, NAEA proceeds with a survey of its members.


I personally do not consider Grant Shapps and the Conservative Party can continue to rely on the support of the majority of estate agents, and as I have questioned before, surely the time has now come for the Conservative Party not to make the same mistake it has with its planning policy, and to take immediate steps to begin listening to stakeholders and to modify its HIP policy accordingly.

The Negotiator reports - HIP standards satisfactory, claims Trading Standards

An article in the Negotiator reports that HIP standards are satisfactory, according to Trading Standards.

The article can be read below:

The majority of Home Information Packs are satisfactory in standard, according to a new survey by Trading Standards.

Some 70% (26) of the packs surveyed were rated satisfactory or reasonably satisfactory when measured against the HIP regulations in Birmingham City, where the survey was conducted. Across the 30% (11) of packs rated unsatisfactory, one of the the biggest criticisms was that buyers were left with no idea of who to contact if they have any cause for complaint over the content of the HIP.

The survey was conducted by Trading Standards in conjunction with the Property Codes Compliance Board, and aimed to identify if estate agents had HIPs in place for the properties they were marketing; were making packs available at the appropriate time; were ensuring packs contained all the required documents and were being provided in the format prescribed by the regulations; and whether the contents were accurate.

Some 40 HIPs were requested from as many agents across the city, and forwarded to the PCCB for inspection and checking. The most common faults included:



• no information on complaint / redress procedure



• no consumer information



• no company contact details



• technical Issues with the search



• HIP Index related issues



Chris Neville, head of Trading Standards at Birmingham City Council, says: “The exercise shows that the market is generally compliant, but buyers should be aware that not all HIPs can be taken at face value as being accurate.

"We will keep a watchful eye on the estate agent and HIP provider market, and we urge buyers to contact us if HIPs are not made available by estate agents at the time of marketing. To avoid any confusion over the accuracy of information provided in a HIP, we recommend that both buyers and estate agents should choose a HIP Code registered firm, as our survey has found these to be the most trustworthy”.

Link to article: http://www.negotiator-magazine.co.uk/article/hip-standards-satisfactory--claims-trading-standards-1214

Invite to Grant Shapps to 'think outside of the box' on HIP policy

One of the main flaws in the Conservative Party policy on home information packs is the complete absence of ‘forward thinking’ and a reluctance to engage in the art of ‘thinking outside of the box’.


Persistently highlighting the perceived negativity of the HIP is easy and perhaps explains the frequency of the anti-HIP sound bites. However the reluctance to back this up with credible explanation as to why it would not be better to retain and evolve, rather than to ‘scrap’, only serves in my mind to expose and highlight an underlying problem with Conservative Party policy generally.


Nobody likes change and the safe course for a party in opposition to navigate in the run up to a general election is to say as little as possible, and to focus instead on knocking and highlighting perceived flaws in Government policy. Is this however a convention that still applies and more importantly works when with the scandals surrounding MP expenses has led to a major and unprecedented change in the electorates’ expectations. They are fed up about hearing how bad the Government is doing and are far more interested in hearing detail of the policy the Conservative and other political parties propose to introduce in the hope of making things better. In not recognising and tuning into this vein of public feeling the Conservative Party after a good start is beginning to suffer the consequences. The polls are narrowing and the Conservative Party is struggling to recover the lead it enjoyed this time last year.


I am sure further policy detail will follow once the party manifesto is released but will this prove too late in the day to save the slide that is currently in progress.


The Conservative’s Party policy on the HIP is a good example of this lack of foresight. Grant Shapps has constantly proclaimed the HIP as representative of what is bad with this Country, namely that we have too much regulation, and that there is a need for this bureaucracy to be reduced. Strangely enough I agree, though to use the HIP as a ‘flag ship’ without considering and judging the HIP on its own merits and potential is on an intellectual plane inexplicable and is hardly consistent with a political party that prides itself in formulating ‘progressive policy’.


As with most areas of life people are less interested, and indeed turned off, as to why some area of the home selling and buying process is not working, and are far more stimulated in hearing about constructive thoughts and views on what can be done to bring about long overdue improvement. The reason for this is simple – it demonstrates knowledge and insight and more importantly inspires confidence. We are all desperate to have a Government that is progressive, that is looking to make positive changes for the good and is driven by creative thinking people.


So here are some friendly pointers for Grant Shapps in the hope he has the necessary courage the break the mould and to take a lead in demonstrating that not all Conservative MPs are insular in their thinking and vision for the future.


How about embracing the compulsion element of the HIP delivery and make positive use of the opportunity this provides, not only for speeding up the home buying and selling process, but for the distribution of consumer related public information.


At present the majority of sellers and buyers will encounter the HIP so why not make more use of the opportunity it presents for the targeted delivery of public information sheets on for example:


• Flood plains, on what services and grants are available to assist with plan prevention, and on available insurance schemes.


• Energy Improvement - how can a seller and buyer use the recommendation report tied in with the EPC to bring about carbon emission reducing improvements? What public funded schemes are available and how can these be accessed.


• The Conservative ‘Energy Refit’ Scheme – what better way of getting this policy delivered to its targeted audience than to include information and contact details within the HIP?


• Re-possession - Housing Minister John Healey said the government is putting an extra £2.5 million into support and advice services in 86 repossession ‘hot spot’ areas. Grant Shapps comments that the number of re-possessions for the year is up by 15 on 2009. Irrespective who is right here the fact is that most people would agree the more information that can be delivered up front on this issue the less stressful this whole experience could be for the many unfortunate householders.


Thinking outside the box is not difficult and by turning something that is perceived by some as ‘bad’ into a ‘good’ and consumer friendly product, takes far more skill and foresight and must without doubt court a far positive response to the quickly fading message of being a party ‘for change’.

Kirstie Allsopp, Grant Shapps advisor,expresses concern about long transaction time on property sales

How interesting it was to read in the latest edition of John Lewis’s ‘Edition’ that Kirstie Allsopp apparently advises Grant Shapps on housing issues. Even more revealing was the concern she has about the time it takes for a transaction to reach the stage of exchange of contacts, and how she feels that the process is need for reform.


In the article she says:


‘I am working with him [Grant Shapps] on how to make buying and selling a house easier. The time from offer to exchange has doubled in the last 20 years, which is ridiculous, given that we’ve got email, e-banking – everything that should make the process faster. The fact that it has become more difficult and time consuming makes me very angry’


Hopefully in her capacity as Grant Shapps advisor the property industry will be able to rely on Kirstie to support the moves being made by supporters of the home information pack to take the HIP and to evolve it into an ‘exchange ready’ product. Independent evidence has already shown that by including more legal information and documents within the HIP will help to reduce transaction time even further and more importantly take the stress out of moving home.


Having refused to listen to the proponents of exchange ready HIPs perhaps Grant Shapps will be influenced more by the concern and words of wisdom spoken by his very own advisor. To do otherwise must throw doubt on a well founded opinion expressed by this well respected television spokeswoman.