Insurance News Archive

Hips coming in under budget

So far the introduction of Home Improvement Packs has cost the government £11 million, but there is still a £5 million fund to call upon if necessary, according to official figures.

Housing minister Yvette Cooper revealed the details in a written answer to a question from her shadow colleague on the opposition bench, Caroline Spelman, concerning the costs of the new scheme which aims to simplify the process of buying a house.

The money has been spent on running trials of the new system, as well as on administration and legal fees.

But with two months to go before the launch there is still a healthy amount left of the £16 million fund allocated.

"The money has been spent on developing and testing the home condition report and other components of the pack; putting in place a quality assurance framework to protect consumers and guarantee standards; developing the necessary systems and explaining the changes to the public and industry stakeholders," Ms Cooper said.

From June 1st Hips will be compulsory in all home purchases, despite earlier fears from some organisations, such as the National Association of Estate Agents, that the scheme will not be ready or will prove a futile and costly distraction.

15 Mar 2007