IMLA attacks HIPs
Research conducted by the trade body revealed 68 per cent of IMLA members thought HIPs was a poor or bad idea, with 42 per cent of respondents suggesting HIPs will slow down the transaction process. 84 per cent of members thought costs would increase, while 21 per cent argued there was ‘no chance’ of HIPs being ready for the June 2007 deadline.
An IMLA spokesperson confirmed lenders had other doubts about the implementation. He said: “Lenders were sceptical about using the Home Condition Report (HCR) from the HIP in their valuation process and are wary about relying on its title information. Only one lender said they would definitely use the HCR.”
Hugh Nichols, partner at Badbury Berkeley Mortgage Services was unsurprised by the results. He said: “I don’t think there will be enough inspectors and I agree HIPs are ill-conceived, badly thought-out plans. They will not speed up the housing process.”
However, Mick McGuire, director of business development at Principality Building Society, disagreed, and said HIPs would benefit borrowers. He explained: “HIPs will carry a cost for people selling a house but they will save buyers, especially first-time buyers, from paying for a survey.
“HIPs will increase transparency in the market and, by speeding up the house buying process, will be good news for buyers and sellers alike. However, for customers to fully benefit there is a need for everyone in the industry, including estate agents, solicitors, surveyors and lenders, to fully embrace the changes.”