The 'Oliver Letwin' based argument for the evolution of the Home Information Pack

One of the major hurdles to overcome when engaging with the Conservative Party on the need for reform to the home buying and selling process is its obsessive dislike of regulation. It is of no secret that the Conservatives consider there is too much red tape and regulation in this Country. Grant Shapps referred to this in his speech at the recent Party Conference when reiterating the Party’s intention to ‘scrap’ HIPs. He was not alone. David Cameron, in his Party speech also voiced disgust at the rather ludicrous case of the two police officers who got themselves into trouble because they were babysitting each others’ children when they were out at work. There is no doubt the Party’s case on de-regulation is strong – we have far too much red tape and its stifling business.

However this does not mean that all regulation is bad. There are times when it is necessary as indeed is recognised by one of the major contributors to Conservative policy making. Oliver Letwin, Chairman of the Conservative Policy Review, in The Right Kind of Regulation (a speech given to Policy Exchange on January 27 2009) distinguishes between “Type A” and “Type B” regulation, where Type A is “rules based” and Type B is “judgement based”. Type A regulation, which focuses on compliance and form filling, can blind people to the need for Type B, which relies on the judgement of people with trusted integrity. He recognised there was a need for both type of regulation but pointed to a confusion of understanding of the difference as the reason for Labour’s over and in some cases under regulation of society.

In the case of Home Information Packs and the growing argument for the HIP to be used as a basis for long overdue reform to the home selling and buying process, Letwin’s approach to regulation allows proponents to argue that it is the process which presents the problem meaning there is no possibility of a ‘Type B’ solution working.

Home buying is an area where prior to HIPs self-regulation (Type B) had delivered a process that was hindering the market. The process was littered with problems of ‘gazumping’, abortive sales as well as a profession that could not be trusted to follow self imposed protocols. Regulatory intervention has helped to make the process work better for consumers, but must go further, though with the caution of ensuring its application is light by not placing extra obligation/burden on consumers and professionals.

For reform to work for the benefit of the consumer there is no option but to regulate as practice since 1925 has shown the home buying and selling process will not improve if it is left to lawyers, estate agents and other professionals to lead the way. There is too much self interest at stake.