19th Jul 2006 12:39
19 July 2006 Countrywide plc Response to Government HIPs Announcement Countrywide notes the content of yesterday's announcement by the Minister forHousing and Planning, Yvette Cooper, concerning the implementation, content androll out of Home Information Packs ("HIPs")In particular, the decision to remove Home Condition Reports ("HCRs") from theschedule of documents required to be included in a HIP is noted.Countrywide has been preparing for the introduction of HIPs and HCRs for sometime, and there has been a considerable investment in executive and managementtime devoted to understanding the detail of the legislation, productdevelopment and the group's response to the market opportunity. However, therehas been no significant direct expenditure or capital investment this year.Detailed plans for the recruitment and training of sufficient Home Inspectorsto meet the anticipated demand for HCRs have been prepared. Pending a fullassessment of the likely impact on the market, and discussions with Government,these plans will be put on hold.In view of the recent speculation surrounding HIPs, Countrywide welcomes thedegree of certainty that the announcement brings, and in particular, nowanticipates that little disruption to the housing market in 2007 will arisefrom the introduction of the reduced HIP.In our announcement on 7 July, we confirmed that the housing market remainsencouraging, our surveying business is very busy and profitable, and prospectsfor the year are good. Whilst there may be some long term impact on the Group'searnings if HCRs are not introduced, the broader market outlook for 2007 hasnow become clearer. The Board believes that current market estimates should beunaffected, and consequently is committed to meeting current marketexpectations in relation to dividend payments.We will provide a further update with the announcement of our Interim Resultson Tuesday 15 August.For further information please contact:Countrywide plcChristopher Sporborg, Chairman Tel: 020 7242 5300Harry Hill, Group Managing Director Tel: 01376 533 700ENDCOUNTRYWIDE PLCRelated Shares:
CWD.L