CML welcomes HIPs timeline
The CML regards this as essential to enable the ODPM and the industry to work together to an agreed timetable, and to monitor whether progress is on track.
There is still a great deal of work to do to implement HIPs. For lenders, the biggest question is on how to interact with the home condition report (HCR) that will be contained within the pack. The CML is pleased that the government is now indicating that it expects to give lenders free access to the databank of HCRs. But HCRs are not a substitute for lender valuations – they do not contain an assessment of value. Lenders may be able to use automated valuation systems to establish value in some cases, but not all. Over time, automated valuations are likely to become more common, but at the time HIPs go live there is still likely to be a sizeable proportion of properties on which lenders will wish to commission physical inspections for valuation purposes.
Peter Williams, CML Deputy Director General, commented:
“We are pleased that we now have a timetable setting out the key timings on the road to bringing in home information packs. This will help to ensure that there is a clear shared understanding between the ODPM and its industry partners in what needs to happen by when to enable HIPs to go live on 1 June 2007.
“But no-one should under-estimate the scale of the task ahead. It is quite clear that, even when HIPs go live, it will take some time for the market to gain experience and confidence in the new environment, and only then will its full benefits to consumers be realised.