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HOPELESS, INEPT...PATHETIC

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Bewildering: Ruth Kelly announcing the decision in the Commons

Wednesday May 23,2007

By Sarah O'Grady , Property Correspondent

The Government has been forced into a humiliating climbdown over controversial Home Information Packs just days before they were due to come into force.

In an embarrassing setback, ministers delayed introduction of the mandatory sellers’ packs after a torrent of warnings that the scheme was doomed.

The panic measure came after a legal challenge and experts predicting chaos in the housing market.
Embattled Communities Sec­retary Ruth Kelly was forced to postpone the start of the packs – which will cost up to £700 – by two months until August 1.

To add to the confusion, the scheme will initially apply only to sellers of homes with four or more bedrooms. Smaller properties will be covered in 2008.

But the bid to rescue the widely discredited HIPs was greeted with derision by critics who pointed out that the Government had wasted 10 years planning the policy.

ì
Ruth Kelly is too churlish to resign grace­fully.
î

Robert Bryant-Pearson, Allied Surveyors

And they warned that the latest changes would create more confusion among sellers and buyers.

Conservative Shadow housing minister Michael Gove branded the move a “desperate last-minute retreat”. He said: “Can I ask why, after being warned over a year ago that they were comprehensively mishandling this issue, Ministers have seen fit to retreat only now – with eight days to go before Home Information Packs were due to be implemented?

“Was it stubborn vanity, or sheer incompetence? Why did ministers press ahead with a scheme everyone who knows anything about the housing market was telling them was flawed at the heart?”

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And Tory former Cabinet minister Lord Tebbit demanded the Govern­ment provide a definition of a bedroom “which would stand up in law”.

“Have you not seen advertisements in estate agents’ windows for houses with two/three bedrooms, three/four bedrooms?” he told the House of Lords.

“The Government must have a legally binding and watertight definition, otherwise this thing is more of a shambles than it looks now.”

Ms Kelly claimed the U-turn offered a “pragmatic way forward” and would give “clarity to everyone”.

As a transitional measure, until the end of the year, people could market properties as soon as they had commissioned a pack. Energy Performance Certifi­cates could be up to 12 months old when the property went up for sale – extending the current three-month limit.

The Government had ignored a growing wave of concern from estate agents about the lack of trained and accredited Domestic Energy Assessors able to issue an Energy Performance Certificate.

More than 3,000 were needed – and yesterday Ms Kelly revealed there were just 520 available. But the final nail in the coffin for the scheme was a judgment against the Government at the High Court.

The Honourable Mr Justice Collins said the Energy Perform­ance Certificates should be excluded from the HIPs “for the time being” – effectively killing the policy.

The judicial review had been launched by the Royal Institution of Chartered Surveyors, a longtime critic of the scheme.

Last night Ms Kelly was involved in a a fresh row with RICS after she claimed it agreed with her new changes to the policy and that it had stopped its legal action.

RICS housing spokesman Jeremy Leaf stormed: “RICS has not agreed to what the Minister outlined in Parliament. We have not withdrawn the Judicial Review – it has been ‘stayed’ and can be reactivated if the Government fails to deliver on its obligations.

“We only agreed to the stay of the Judicial Review on the following terms – that the Government provide a 12-week consultation period on EPCs, that the Government publish a Regulatory Impact Assess­ment, including a full cost-benefit analysis, and that our legal costs are paid. We will be examining the new proposals in detail and will continue to work in the public interest on home-buying reform and climate change.”

Robert Bryant-Pearson, chief executive of HIP provider Allied Surveyors said: “The problem that we are faced with when the Government appoints people without any business experience or acumen to ministerial posts is that we have little option but to go along with draft regulations and to trust that Ministers will deliver somewhere near what they promise.

“Judging from past experience, Yvette Cooper and Ruth Kelly are both too churlish to resign grace­fully and, having destroyed their credibility, will merely wait to be sacked. Last year, I witnessed personal tragedy when people who had given up other lines of work to train to be Home Inspectors had their expected new career snatched away from them. Now it will happen again.”

Miles Shipside, of property website Rightmove, said: “This delay will be galling for thousands of sellers who have now pointlessly rushed to beat the June 1 deadline, and doubly galling for those in the industry who have invested thousands in preparing to meet it.

“We now question the wisdom of HIPs going ahead at all in their ­current form.”


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WELL SAID

24.05.07, 4:31am

With regard to The_Way_I_See_It comment.

Well said sir!

• Posted by: kojakReport Comment

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HIP HIP HOORAY

23.05.07, 4:10pm

Another day - another fiasco. God help us if they are entrusted with a nuclear programme!!

• Posted by: JAYDEEReport Comment

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TO ADD TO THE CONFUSION, THE SCHEME WILL INITIALLY APPLY ONLY TO SELLERS OF HOMES WITH FOUR OR MORE BEDROOMS. SMALLER PROPERTIES WILL BE COVERED IN 2008.

23.05.07, 9:53am

Lets tax those who are making more first maybe the English are stupid enough to believe that adding a 0.175% tax to a £400k property before we add a 0.7% tax to a £100k property we are not victimising the poorest members of society again!

Job creation schemes for the unemployables AKA the green mentallity, just like waste disposal and recyclling do not tackle the actual problem but make non jobs for morons!

People know all about recycling and eco friendly properties but they cannot be bothered because their is no incentive.

Instead of replacing a 2p Brochure with a £700 pound brochure personalised from a crib sheet for idiots why not look at the real problems.

The thousands of tons of waste paper dumped through our letter boxes each year, the millions of tons of unnecessary packaging we are forced to pay for each year, try dealing with the problems that are their not creating new ones to create jobs!

A 10% council tax deduction for ECO certified properties, make these stupid ideas something people want, increase taxation on electrical appliances in the worse classes make manufacturers produce the goods you want.

DEAL WITH THE INITIAL PROBLEMS NOT THE END RESULTS, MANUFACTURERS WOULD MAKE ECO FRIENDLY PRODUCTS IF THE TAX ON NON ECO FRIENDLY PRODUCTS HIT THEIR SALES. TAX MANUFACTURES ON PACKAGING THE AMOUNT OF EXCESS PACKAGING IN MANY CASES IS RIDICULOUS, TAX THE PEOPLE THAT SEND ME JUNK MAIL NOT CHARGE ME TO DISPOSE OF IT!

• Posted by: The_Way_I_See_ItReport Comment

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HOPELESS, INEPT...PATHETIC

23.05.07, 9:43am

Unlikely Ms Kelly would resign - she's got those private school fees to pay for!

• Posted by: DaddyCoolReport Comment

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HOPELESS, INEPT...PATHETIC

23.05.07, 9:18am

If the Taxpayer was'nt footing the bill for them you might just be able to laugh.

• Posted by: AnthonyGibsonReport Comment

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