When HIPs become law in England and Wales on 1 June 2007, house
sellers will have to produce information packs for buyers, at a
cost of around £600 plus VAT. (Office of the Deputy Prime
Minister news release, 17 November 2005.) Ministers say that
HIPs will cut the number of sales which fall through, thereby
speeding up the home buying and selling system. MIAS is concerned that the
introduction of HIPs will initially slow down the current home
buying system further. Roger Milbourn, Director of
MIAS Ltd said: "I believe that the implementation of HIPs will
initially slow down the housing market, as in order to put a
property up for sale, sellers will have more work to do and will
need to find at least £600, in order to compile a pack. HIPs
will impose extra costs and red tape in an already complex
market. They could have serious repercussions on the buying and
selling process - and, consequently, on house prices."
MIAS Ltd also sounded another note of caution.
Roger Milbourn said: "Finding enough people to carry
out the 1.5 million surveys currently done each year may prove
extremely difficult. The Office for the Deputy Prime Minister
tells us that as of November 2005, 1700 people were undergoing
training for the Home Inspector qualification - but that the
number of inspectors expected to be required for June 2007 is
between 5000 and 7400. (Ibid.)" MIAS Ltd hopes the
Government will ensure that sufficient Home Inspectors have been
trained by the time HIPs become mandatory next summer.
Commenting, Alistair Good, Managing Director of MIAS,
said: "The implementation of HIPs represents a major change to
the process of buying and selling property. It is vital that
ministers examine the potential impact the packs will have on
the market, in order to provide assurance to the industry and
the public. "We await the results of the Government's
"dry run" with HIPs later in the year with interest."
For further information, please contact: MIAS Ltd
0845 833 0878 Managing Director: Alistair Good
Director: Roger Milbourn
Notes to Editor: The Mortgage and Insurance Advisory
Service (MIAS Ltd) is a firm of impartial mortgage advisers,
offering a comprehensive service to clients seeking residential
and commercial mortgages and mortgage protection.
Founded in 2002, MIAS has quickly gained a reputation for
providing straightforward, impartial mortgage advice, matching
clients up with some of the most competitive deals around.
MIAS's experienced brokers have expertise in all sectors of the
mortgage market and look after the whole transaction from
beginning to end, making the process as smooth and as
headache-free as possible. For further information on
the services MIAS offers, please visit MIAS Company
Registration No: 4578793 Consumer Credit License No:
529227 Financial Services Authority No: 301532
MIAS Ltd is authorised and regulated by the Financial Services
Authority. You can check this on the FSA's Register by visiting
the FSA's website www.fsa.gov.uk/register/
or by contacting the
FSA on 0845 606 1234.