The implementation of Home Information Packs (HIPs) should be postponed until full evidence from research and the area trials are available, says the Council of Mortgage Lenders.

In its response to the latest Government consultation on HIPs, the CML says this evidence is required before an informed decision on the effectiveness of the scheme can be made.

The CML says the Government has been slow to recognise the problems with local authority searches and the HIPs timetable is increasingly lacking credibility as proposals for change are still being made less than four months before full implementation. CML head of policy Jackie Bennett says: “This close to the implementation date, there are still far too many unknowns about the potential market impacts. We call on the government to postpone the introduction of HIPs until they have been properly trialed and reviewed."

Paul Cowdery, Conveyancing Partner, comments: “The view from CML is what we expected to see.  CML is particularly concerned about the impact on the market generally as this could affect not only future business but also bring about a downturn in property values generally which could adversely affect the value of the security taken by lenders on existing loans.

There is a feeling that CML has little confidence in the Government which was confirmed when I spoke with a CML representative last November. CML’s lack of confidence is translating itself into a lack of co-operation I suspect and this has some important consequences for the cost of HIPs.

For example, it was hoped that CML would provide guidance for validating searches carried out at the start of the marketing process but which may not be used to complete an actual purchase for more than 6 months (which is the maximum current life span - some suggest that 3 months is the life span). Without this guidance, buyers will have to repeat searches, which will double costs!

From our view point, we are able provide all the legal elements of the HIP. The main challenges at this stage are being able to deal promptly with the provision of an Energy Performance Certificate (apparently lots of inspectors are about to commence training to meet the demand!) and a change in culture where sellers are providing payment for searches at the outset of marketing.”