The Conservative party has called on the government to scrap HIPs as they are not cost-effective.
Speaking at the Association of Mortgage Intermediaries Annual Dinner the Rt Hon John Gummer MP, AMI’s chairman, said: “The time has come to withdraw the current proposals and introduce a more sensible measure which will also meet environmental needs. An energy efficiency report should be implemented, but in the most cost-effective way.”
The Conservative Party says that, since Energy Performance Certificates now make up the bulk of the proposed HIPs regulations, it would be more productive to abandon the HIPs proposal and cited Northern Ireland as an example of how EPCs have been introduced without HIPs.
Gummer also says that the Government should have done more to consult with the industry and listen to its concerns.
The shadow minister for housing, Michael Gove MP, also attended and said it was important to keep regulation to a minimum.
Gove says: “Less is more when it comes to regulation. It only piles burdens on small companies. Our success as a financial centre is built on the lightest touch regulation.”
Chris Cummings, AMI’s director general, outlines three regulatory issues which AMI members would like the FSA to consider:
- Providing full guidance on TCF principles as intermediary firms do not have the same depth of resources as lenders.
- Only implementing RDR proposals for the investment market if they are appropriate.
- Retaining commission as there is no evidence of bias within the mortgage market.
AMI represents around 80% of all mortgage intermediaries and more than 350 representatives from across the mortgage industry attended the Annual Dinner.
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