Statement by Jeremy Leaf, Chairman, RICS Residential Faculty on RICS' application for HIP redress

"I believe that Governing Council has heard about the current concern over RICS' application for the Surveyor Ombudsman Scheme (SOS) to be approved as a redress scheme under England and Wales legislation. 

"This is an issue for England and Wales Councils and the Residential Faculty here in the UK but I wanted to brief you on the issue since it has been brought to your attention.

"The first thing I want to say is that this issue is part of our broader agenda to create a UK-wide scheme of consumer redress in the context of surveying services. 

"The UK-wide SOS will go live from June this year giving access for members and their consumer clients to free, independent redress for the first time. 

"Our application to the Department of Trade and Industry (DTI) is for approval to offer redress in the context of Home Information Packs, to be introduced here on 1 June.

"The existing Ombudsman for Estate Agents (OEA) has been approved and the SOS has not received approval yet. 

"I am confident that we have done all we can within the constraints of time and process to achieve this and want to explain in more detail where we stand at the moment.

"The issues are, first, unfortunate timing - our scheme is part of the wider regulatory reform programme and was only recently fully ready for submission to DTI (OEA has existed for 17 years in the UK). 

"Secondly, the DTI has decided, on legal advice, that it must consider our application according to the process it used for consideration of OEA's scheme. 

"As soon as we could, we made our application and the DTI has committed as far as it is able, within the constraints of the fair process it has adopted and Ministerial availability, to considering it in time to grant approval by 1 June. 

"This involves assessment of our application (contract, terms of reference, protocols with other enforcement agencies), and a period of consultation with stakeholders, followed by Ministerial approval.

"The DTI have welcomed our application and view the existence of more than one redress scheme as beneficial, offering choice to those undertaking HIPs related work. 

"We are working closely with the Department and are very confident that we will obtain approval. 

"However, the DTI has made it clear that it cannot guarantee approval by 1 June. 

"Both sides are committed to succeeding but we cannot make any promises, hence the need to inform members of the alternatives - currently these are to join the OEA, or not to offer HIPs. 

"To offer a HIP without belong to a Scheme will be an offence from 1 June. 

"In these circumstances it is impossible for us to advise members to wait and see what happens. 

"We are in regular touch with the Department and working as fast as we can to meet their requirements.

"We have been keeping members informed on the position through the Faculty and will continue to do so."