Are Home Information Packs (H.I.P.s) distorting the housing market?
Selling your home? See your solicitor first - You'll be taking great advice!
The Facts:
Home Information Packs (“H.I.P.s”) came into force for homes with four or more bedrooms in August 2007. The pack contains an Energy Performance Certificate (EPC), sale statement, searches and evidence of title and is a legal requirement before you may market a property.
Since September 2007, all properties in England and Wales with three or more bedrooms have also required a HIP.
From 14 December 2007 the requirements for HIPs will be extended to cover one and two bedroom properties.
From April 2008 the Government will begin to roll out Energy Performance Certificates for newly built homes, as well as across commercial property for sale, rent or construction.
By October 2008 all public buildings will have a display certificate.
A Good or a Bad thing?
The housing market in the U.K. has experienced considerable turbulence with three interest rate rises since the beginning of the year, the ongoing credit squeeze and the first run on a bank since the depression. Have HIPS added to the troubles or will they improve the condition of the Housing Market?
Some, including the Government believe that HIPS are indeed good thing in that the effect will be for First Time Homebuyers to see their upfront costs drop and all home buyers benefit from receiving A_G green ratings for their properties which will help cut fuel bills and carbon emissions, as a result of the EPC. Buyers whose homes score poor energy ratings will receive an offer of a discount or free help with energy efficiency measures from the Green Homes Service. The aim is essentially to speed up the house buying process by giving house buyers more of the information they need up front.
According to the Government:
HIPS are taking on average 7 to 10 days to prepare
The majority of property, and drainage and water searches, are being delivered promptly within 5 days
EPCs are being prepared on average within 2 – 4 days
The average cost of a pack is £300 to £350 – costs which are already part of the home buying and selling process.
However, we understand that some consumers may feel that HIPS have just made the home selling process even more complicated and a waste of time.
Others warn that rolling out HIPS to all residential properties will lead to first time buyers being priced out of the market and therefore, it would be harder for them to get on the property ladder.
The National Association of Estate Agents (NAEA) says fewer large properties are now on the market than would normally be at this time of the year. Over 75% of NAEA members said instructions for properties with three or more bedrooms were down this October 2006 from the same time in 2006 by more than 10%.
The Royal Institution of Chartered Surveyors warn that the full introduction of the HIPS would wipe 300,000 properties off estate agents’ books as homeowners consider the idea of paying between £300 - £500 just to get an idea of how much they could sell their property for…
Reduction in supply could increase demand causing house prices to inflate well beyond affordability.
The Bowling “HIP”
The Bowling HIP can be organised by your Solicitor by one simple phone call to our search agency who will immediately issue written confirmation confirming that your HIP has been ordered, enabling you to market your property with peace of mind. You will be contacted by a Home Inspector who will arrange to inspect your property to prepare the E.P.C. The HIP will be ready within the next few days ready to be sent to a prospective buyers’ solicitor. You will be sent a paper copy and CD Rom Version of your HIP.
Bowling & Co. offer a fast, friendly and efficient residential conveyancing service. The firm has been established for over 50 years. We can assure a proper service giving you full advice on the legal implications. We also provide expert legal advice for buyers on legal issues before they make an offer. Our team is here to look after you.
Contact us:
Call us on 020 8221 8000 or contact us via our dedicated HIPs email address:
Why Use The Bowling & Co H.I.P. ?
It will include all relevant legal documents
Pack arranged through your Solicitor at Bowling & Co who will give a proper service with full advice on the legal implications
Access to local qualified and expert independent surveyors to advise on condition of house and its value before you make an offer
Can be prepared in advance of marketing your property
If you’re selling or buying a property, get the best HIP content and advice at competitive fee rates from Bowling & Co contact us via our dedicated HIPs email address:
Summary
Change for the best is a good thing. We understand that the introduction of HIPS is part of a wider programme of reform by the Government to home buying and selling including e-conveyancing and better redress, which aims to provide consumers with more benefits. We believe that the legal changes made by the government to the property market should be embraced positively.
Disclaimer Notice:
The information and any commentary on the law contained in this advertisement is provided free of charge and for information purposes only. Every reasonable effort is made to ensure the information and commentary is accurate and up to date but no responsibility for its accuracy and correctness, or for any consequences of relying on it is assumed by Bowling & Co. The information and commentary does not, and is not intended to, amount to legal advice to any person on any specific case or matter. You are strongly advised to obtain specific personal advice from a solicitor and not to rely solely on the information or commentary in this advertisement.