Report: Home Information Packs TOC

CHAPTER 1 INTRODUCTION
- Scope of the report
- Who is the target reader?
- How to use this report
CHAPTER 2 HOME INFORMATION PACKS IN CONTEXT
- Introduction
- HIPs explained
- The home information pack will include various documents
- In addition, the pack for leasehold properties will require further information
- Not all properties put up for sale will require a HIP
- Various professional groups have a stake in the introduction of the HIP legislation
- The introduction of HIPs is expected to deliver a number of benefits
- HIPs are being introduced with the aim of improving the house buying and selling process
- First-time buyers are expected to benefit the most from HIPs
- In addition, there will be some side benefits
- Estate agents will be required to belong to an approved redress scheme
- The HIP regime is giving rise to the creation of a new position - the Home Inspector
- But industry opinion is divided about whether HIPs will deliver their objectives
- HIPs are far from receiving a unanimous welcome by the industry as many believe the regime will fail to meet its aims
- The Conservative party caused controversy by publicly pledging to scrap HIPs if it wins the next election
- Housing Minister Yvette Cooper stands firm with the HIP legislation
- Datamonitor's HIPs Survey 2006 further highlights the controversies raised by the HIP legislation
- A significant number of intermediaries believe that HIPs will fail to meet their overall purpose of improving the buying and selling process
- Moreover, a significant proportion of participants disagree that HIPs will reduce failed transactions or improve housing stock conditions or lead to greater consumer choice
- An overwhelming majority of intermediaries interviewed do not believe that first-time buyers will benefit from HIPs
- Uncertainty about how HIPs will impact on the housing market and beliefs that they will lead to a fall in business are partly responsible for the antagonism showed by many
- Furthermore, there are fears that the mortgage market will become less liquid in the long-term
- Furthermore, there are various areas of concern with the implementation of HIPs
- The HIPs implementation timeline is too tight given that a number of uncertainties remain
- Since the HCR will not contain an assessment of the property value lenders will still need to conduct valuation reports
- Moreover, there are doubts about whether the Government will meet the target set for the number of home inspectors within the agreed timeline
- There are fears that the Government has left it too late to choose the IT company that will be allocated the contract for the HCR central database
- HIPs will be too expensive to produce
- There is a lack of regulation for the HIP provider industry
- Conclusion
CHAPTER 3 OPPORTUNITIES FOR STAKEHOLDERS
- Introduction
- A number of players are embracing the opportunities offered by HIPs
- Estate agents are believed to be the stakeholders who will benefit the most from HIPs
- The NAEA has teamed up with LMS to offer white labelling HIPs to its members
- Solicitors and surveyors are also expected to be at the front line to take advantage of HIPs
- Case study: Habitus - embracing opportunities from HIPs
- Lenders and brokers are viewed as being the least likely to benefit from HIP opportunities
- Nearly two-thirds of intermediaries interviewed do no think that HIPs will open new opportunities for their business
- Despite lenders not being expected to play a major role in the HIP industry, many are looking to enhance consumer service and retain customers via HIPs and HCRs
- New players are establishing themselves in preparation for HIP implementation
- Case study: MDA acquires xit2 to expand its property information business in the UK and exploit opportunities derived from the HIP legislation
- Asda is planning to join the home buying and selling industry and offer HIPs for free in order to attract customers
- Conclusion
CHAPTER 4 CONCLUSIONS
- Introduction
- Datamonitor believes that the HIP regime will not have a major impact on the level of activity in the housing market
- There will be a short-term destabilization in the property market before the sector returns to normal
- However, HIPs will impact on the distribution shape of the mortgage market
- Mortgage brokers will lose out to estate agents
- New opportunities are at hand for those willing to embrace the HIP legislation
- The winners will be those stakeholders that adopt a positive attitude and rise to the challenge
CHAPTER 5 APPENDIX
- Supplementary data
- Data tables relating to Chapter 2: HIPs in Context
- Data tables relating to Chapter 3: Opportunities for Stakeholders
- Definitions
- HIPs
- Mortgage intermediary
- Mortgage Network
- Research methodology
- Primary research
- Secondary research
- Relevant readings
- UK Mortgage Market Map 2006
- Key Features
- For futher information
- Reports
- European mortgage reports
- UK mortgage reports
- UK mortgage briefings
- Future readings
- Datamonitor's custom research capabilities
- Retail Banking Team contact details
- List of Tables
  - Table 1: HIPs' timeline published on the 16 march 2006, June 2006
  - Table 2: To what extent do you agree that the introduction of HIPs will improve the buying and selling process?, May 2006
  - Table 3: To what extent do you agree that the introduction of HIPs will lead to transaction improvements by reducing the number of failed transactions?, May 2006
  - Table 4: To what extent do you agree that HIPs will improve housing stock condition by reducing the number of expected repairs?, May 2006
  - Table 5: To what extent do you agree that the introduction of HIPs will lead to greater consumer choice by reducing entry costs?, May 2006
  - Table 6: In your opinion, following the introduction of HIPs, what would be the likely effects on the number of properties coming onto the market?, May 2006
  - Table 7: What effects do you think the introduction of HIPs will have on your mortgage distribution business?, May 2006
  - Table 8: Do you think the industry is well prepared for the introduction of HIPs on 1 June 2007?, May 2006
  - Table 9: Do you think that the seller will ultimately pass on the costs of producing a HIP to the buyer?, May 2006
  - Table 10: Do you agree that first time buyers (FTBs) will benefit the most from HIPs?, May 2006
  - Table 11: Do you think there will be a spike of properties coming onto the market prior to the introduction of HIPs on 1 June 2007 as sellers bring forward their decision to sell in order to avoid extra costs?, May 2006
  - Table 12: Reasons for thinking that the industry is not well-prepared for the introduction of HIPs, May 2006
  - Table 13: How confident are you that there will be enough home inspectors on the market when HIPs are introduced?, May 2006
  - Table 14: According to you, how much will a pack cost on average?, May 2006
  - Table 15: Do you think that the introduction of HIPs will open new opportunities for your business?, May 2006
  - Table 16: What types of professional group are more likely to benefit from opportunities arising from the introduction of HIPs?, May 2006
- List of Figures
  - Figure 1: Industry stakeholders, June 2006
  - Figure 2: Nearly a third of participants strongly disagree that HIPs will improve the buying and selling process, May 2006
  - Figure 3: A large proportion of intermediaries interviewed agreed that HIPs will lead to a reduction in the number of failed transactions, May 2006
  - Figure 4: A slightly higher proportion of intermediaries (36 per cent against 30 per cent) disagree that HIPs will improve housing condition than agree, May 2006
  - Figure 5: There is strong disbelief among intermediaries that HIPs will lead to greater consumer choice by reducing entry costs, May 2006
  - Figure 6: 72.5 per cent of participants refuted that first-time buyers will benefit the most from HIPs, May 2006
  - Figure 7: 71 per cent of respondents expect that there will be a glut of properties for sale prior to 1 June 2007, May 2006
  - Figure 8: Opinions are mixed on how HIPs will affect the number of properties coming onto the market, May 2006
  - Figure 9: Nearly half of intermediaries surveyed think that HIPs will not have any effect on their distribution business, May 2006
  - Figure 10: 62 per cent of intermediaries interviewed believe that the industry is not well prepared for the introduction of HIPs on 1 June 2007, May 2006
  - Figure 11: Uncertainties concerning the Home Condition Report and the fact that the HIP legislation is new territory are major reasons cited by participants for believing that the industry is not well prepared for the HIP introduction, May 2006
  - Figure 12: Almost a quarter of respondents are 'not confident at all' that there will a sufficient number of home inspectors on 1 June 2007, May 2006
  - Figure 13: 48 per cent of intermediaries interviewed expect the cost of a HIP to exceed £800, May 2006
  - Figure 14: The great majority of respondents, 68 per cent, believed that the cost of a pack will be passed on to the buyer , May 2006
  - Figure 15: 60 per cent of intermediaries interviewed believe that HIPs will offer the most opportunities to estate agents, May 2006
  - Figure 16: The majority of intermediaries surveyed believe that HIPs will not open new opportunities for them, May 2006
  - Figure 17: Examples of players that are embracing opportunities brought about by the HIP legislation, June 2006 (Table 1 of 2)
  - Figure 18: Examples of players that are embracing opportunities brought about by the HIP legislation, June 2006 (Table 2 of 2)
  - Figure 19: The UK Mortgage Market Map 2006 covers a wide range of mortgage sectors
  - Figure 20: Taxonomy of UK Mortgage Market Map 2006
  - Figure 21: Datamonitor's core consulting capabilities

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