Home Information Packs - Help Or Hindrance?
As from the 1st June, any properties for sale in either England or Wales will need to have a Home Information Pack (HIP) before the property can be marketed. There will be a maximum 14 day period from the day a seller decides to put their home on the market to the day when they can actually begin to market the property. At £600 for a pack they are by no means cheap!
What Does An HIP Contain?
In summary an HIP will contain the following :-
- Survey
- Local Searches
- Title Deeds
- Sale Statements
although there is also a new addition in the shape of an Energy Performance Certificate (EPC).
HIPs - How Do They Work?
While the idea behind HIPs is acceptable, the practical application of the packs, the collating of information and the cost have all been criticised by many Estate Agents and official bodies in the property industry.
A seller will be requried to approach an HIP provider as soon as possible and request a pack. If after 14 days the pack is not ready then the seller can begin marketing their property (although the pack will need to be completed as soon as possible after the 14 day period), or as soon as the HIP is available, whichever is the quicker.
The chances of having an HIP finished within 14 days are almost impossible at the moment because the government have yet to appoint and train enough Energy Performance monitors to check the energy efficiency of houses. Current estimates indicate that only 25% of the total monitors required will actually be in place by 1st June.
An HIP is basically a detailed report available to all potential buyers, which should cover all of the information which they require to make a sensible offer. It has been argued that late call offs, or people dropping out of purchases, is costing the industry £1 million a day in lost revenue.
Conclusion
While the government have had 10 years to investigate the best way forward for the UK housing market, the introduction of HIPs has not been well received. Whether they will be better received when they actually become law on the 1st June will be interesting, then again a potential £200 a day fine for marketing your property without an HIP may well increase the takeup!
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