Campaigners condemn Home Information Packs delay » Housing » 24dash.com

The Government today announced a delay and watering down of Home Information Packs (HIPs) in a move that disappointed environmentalists and failed to pacify the property industry.

In the face of a legal challenge from the Royal Institution of Chartered Surveyors (RICS) ministers bowed to pressure and pushed back the start date for mandatory sellers' packs from June 1 to August 1.

The controversial packs will also now be subject to a staggered roll-out and will only initially apply to sellers of houses with four or more bedrooms.

The proposed delay and phasing in of the scheme failed to appease opponents of HIPs and was attacked by green groups as "bad news for the fight against climate change".

In a statement to the House of Commons, Communities Secretary Ruth Kelly said HIPs were to be delayed in light of the launch of a judicial review by RICS.

A preliminary view from the Honourable Mr Justice Collins in relation to the case called for the dropping of Energy Performance Certificates (EPCs) - a crucial part of HIPs - if the launch date of June 1 was to be made.

Ms Kelly said introducing HIPs without EPCs would be neither practical nor acceptable and as such opted for a delay.

The Government also revealed today that the number of certified energy assessors needed to meet the June 1 deadline had not been met.

Previous estimates have shown that 2,000 fully trained and accredited assessors will be needed.

At present only 520 are ready for the launch of HIPs, although a further 1,000 have completed training and are awaiting accreditation.

Packs will now see a phased introduction, with the scheme extended as and when sufficient energy assessors become ready.

At first only sellers of large houses - four bedrooms and above - will need to have a HIP, as they are deemed to be the most energy inefficient.

In a further change to existing proposals, sellers will only need to have commissioned a pack before they put a property on the market, as opposed to waiting until they have a HIP in place.

The sellers' packs were conceived as a way of tackling the problem of transactions that collapse late in the day causing stress and financial loss to would-be buyers.

HIPs will include up-front information about a house and an energy efficiency report.

Today's announcement is the second major watering down of Government proposals. Last year, ministers decided to scrap home condition reports as a mandatory part of the pack.

The latest changes to HIP regulation follow intense pressure from industry bodies, who have raised concern over the number of energy assessors, the relative cost of the packs compared to benefit to consumers and the impact of the new regime on the housing market.

The Department of Communities and Local Government said the amendments were made following an agreement with RICS.

But the institution denied they had struck a deal with the Government.

Jeremy Leaf, housing spokesman at RICS, said: "RICS has not withdrawn the judicial review - it has been 'stayed' and can be reactivated if the Government fails to deliver on its obligations.

"RICS has not agreed to what the Minister outlined in Parliament today.

"RICS has only agreed to the stay of the judicial review on the following terms: the Government provides a 12-week consultation period on EPCs; the Government publishes a Regulatory Impact Assessment (including a full cost-benefit analysis); the Government pays RICS' legal costs."

A spokesperson for the Department of Communities and Local Government said: "We have a signed agreement between Government solicitors and RICS. It's in black and white and we understand that RICS have now accepted this fact.

"It makes crystal clear that 'the claimant's application for judicial review will be stayed generally' on the terms set out in a legal schedule."

Following today's announcement, Dave Timms, green homes campaigner at Friends of the Earth, said: "We are furious that the Royal Institution of Chartered Surveyors' legal challenge has forced the Government to delay the introduction of EPCs.

"This is bad news for the fight against climate change. Our homes are responsible for over a quarter of UK carbon dioxide emissions."

Michael Coogan, director general of the Council of Mortgage Lenders, said: "Today's hasty announcement marks the latest in a series of climb-downs and opportunistic amendments. This cannot be an appropriate way to make policy.

"We support energy improvement measures. But, in our view, HIPs are not a prerequisite for delivering the green agenda.

"With the fundamental lack of confidence that now exists in them, we urge the government to ditch the gold-plating and concentrate on better ways of delivering its objectives."

But the Government defended its plans.

Ms Kelly said: "The approach we have set-out preserves the principles of HIPs and EPCs, while ensuring a transition period for the people buying and selling their property.

"Most importantly, it provides an opportunity to make real progress towards cutting carbon emissions from our homes."

Ian Wilson, Managing Director of UK national letting agent Martin & Co said: "While we recognise the potential benefits of assessing the energy efficiency of buildings, the system for this needs to be streamlined and less complicated and bureaucratic than the HIPs proposal."

He added: ""We welcome the postponement of HIPs announced by the Government today, and urge a re-think to add value to the residential buy-to-let market."

Copyright Press Association 2007.

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