HIPs In Place For All Properties
As of Friday 14 December 2007 all homes on sale in England and Wales must include a Home Information Pack. The date can be added to 1 August and 10 September when HIPs were introduced for four-bedroom-plus and three-bedroom homes respectively.
Originally scheduled for a complete introduction on 1 June a revision in Government thinking allowed a slower roll-out, but HIPs have finally reached everyone who might wish to sell their home.
It means that now sellers of all one and two-bedroom homes, as well as larger properties, have to provide a pack which contains evidence of title, standard searches, freehold/leasehold details, and most controversially of all the energy performance certificates.
One of the aims of HIPs was originally to speed up the buying and selling process, but the home condition report - supposed to be similar to a survey - was axed from the packs way before they were introduced. The energy performance certificates - colour-coded in a similar way to white goods for the kitchen - were retained, and are required by EU law. They are designed to assist home buyers and owners on how energy efficient a property is.
Many in the property industry have criticised the packs as adding another burdensome layer of red tape rather than simplifying the home buying process. One group against the packs as they stand is the Royal Institution of Chartered Surveyors (RICS) who warn that the introduction of packs across the board will remove 300,000 properties from the books of estate agents as home owners back away from the thought of paying up to £500 just to gather the information they need to consider selling their property.
Adding some weight to that argument has been some evidence that have shown a surge in properties coming to market ahead of the introduction of HIPs at each stage. Website Propertyfinder.com said that the number of one and two-bedroom properties being put on the market went up by nearly 40% as sellers of the smaller properties rushed to try and avoid the average £350 charge for a pack for such properties.
Nevertheless, independent research commissioned by the Government showed no evidence of an adverse impact on housing transactions, prices or mortgages. Although there has been a great deal of movement in the market - mostly to the detriment of the industry - in the past few months the Government claimed that it was not related to the introduction of HIPs.
Housing Minister Yvette Cooper said: "All homebuyers should be able to get an energy rating for their new home as well as useful advice on how to cut fuel bills and carbon emissions too. Those buyers with low rated homes will also be able to get grants to help put in things like loft insulation or a new boiler. HIPs will also help buyers, especially first time buyers, by giving them important information about their homes they previously had to pay for."
Conservative MPs have suggested that they would get rid of HIPs if elected, but, in order to prevent gazumping, they would introduce a system in which the making and accepting of an offer on a house could be made legally binding.
Published on December 18, 2007
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