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Sellers packs in new delay risk

A senior member of the Royal Institution of Chartered Surveyors has spoken out in a BBC Radio programme saying that the government introduction of compulsory home information packs - scheduled for June 2007 - will be most unlikely to be launched as planned.

Jeremy Leaf told BBC Radio 4's Money Box on Saturday it is "almost inconceivable" Hips can be launched within the proposed timescale.

The news comes as online property company Rightmove announced a 52% fall in first-half pre-tax profits after pulling out of providing Hips and spending more than £8m on the now-aborted scheme to compulsorily include an home condition report in the pack.

Scheme in disarray

Jeremy Leaf said: "It was always felt that the home condition report was the most important aspect of the home buyer's reform."

"In lots of ways we feel it's now fundamentally flawed. The way the government is working at the moment, there's a no real chance of having this ready by June next year."

The biggest worry for many in the industry was that there would not be sufficient home inspectors trained and ready for a launch. Following the government U-turn the situation has become even worse, with some home inspectors not bothering to complete their training.

Meanwhile, an EU directive will still require an energy performance certificate and this will need to be provided by a home inspector. The Association of Home Information Pack Providers believes many home sellers will opt for a full home condition report, even though not compulsory, as the inspector will have to call anyway. The association says this will keep up the demand for inspectors until the government decides to make the home condition report compulsory.

Code of practice announced

The pack providers' association has announced a code of practice for home information pack providers to provide maximum protection for the consumer. Although the government will ensure the home condition report providers are regulated, the scheme will provide a code for the whole Hip.

Mike Ockenden, director-general of AHIPP, said: "The government has already announced that they will be regulating all home inspectors. We are now taking this a step further to provide a voluntary code of practice for pack providers too."

"All members of AHIPP will be subject to stringent standards to ensure consumers purchasing a pack through one of our members can place total confidence in the finished product."