Responding to research from Oxford Economic Forecasting detailing the economic impact of introducing Home Information Packs in June 2007, Stewart Baseley, Executive Chairman of the Home Builders Federation says:
“Home Information Packs (HIPs) were intended to help consumers make informed decisions. The latest research, however, shows that HIPs could have a serious impact on the housing market, with significant consequences for housing supply and affordability as well as jobs and the economy.
“As a matter of urgency, the Government needs to undertake a comprehensive dry-run of the scheme and be prepared to learn the lessons – whatever they may be. We need to ensure that consumers do not become the unintended losers of a scheme set up to serve their interests.”
Notes for Editors
The Home Builders Federation (HBF) is the principal trade federation for private sector home builders and voice of the home building industry in England and Wales. The HBF’s 300 member firms account for over 80% of all new homes built in England and Wales in any one year, and include companies of all sizes, ranging from multi-national, household names through regionally based businesses to small local companies. www.hbf.co.uk
Sponsored by the mortgage lender GMAC-RFC, Oxford Economic Forecasting has conducted an economic impact of the introduction of Home Information Packs. It predicts two alternative scenarios in the short-term, which are:
1) 25% fall in housing transactions followed by a 2% a year rise thereafter
2) 10% fall in housing transactions followed by a 1% a year rise thereafter
It is claimed that 90,000 jobs will be lost as a result of the introduction of HIPs, which corresponds to the 25% fall in transactions figures.
In GDP terms, it is suggested that the 25% figure would lead to a 0.5% reduction in the short term, and 0.2% for the 10% figure.
Regionally, it claims the South West will be hardest hit in GDP terms, with the South East being second-hardest hit.
Full report: http://www.gmacrfc.co.uk/Asp/uploadedFiles//file/OEF%20report%20-%20the%20Impact%20of%20HIPs.pdf
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