Analysts note reflects HIPs uncertainty
The latest analysts note from Scotia Capital (specifically relating to MDA) reflects the continuing uncertainty surrounding HIPs. The note reads…
“Yesterday the UK government tabled revised Home Information Pack regulations formalising changes announced May 22 with HIPs expected to launch on 1st August 2007.
What It Means
• Revised regulations indicate further review of HIPs. Our view is that the new regulations offered limited data to increase confidence that the implementation of HIPs will not experience further delays or changes. Key highlights include: a) plans to subsidize 5,000 HIPs to collect sufficient data to review the impact of the program, b) decisions regarding further amendments will be based on industry consultations held over the summer, and c) HIPs will launch August 1 for homes with 4 or more bedrooms with rollout to other properties based on the availability of certified assessors.
• Transition in UK leadership next catalyst. Our view is that the June 28 transition in political leadership to Gordon Brown from Tony Blair represents a key date as cabinet changes could offer insight into the new government's view on HIPs.”