HIPs arrival
Monday, 23rd April 2007What does the arrival of HIPs actually mean? Are you confused by all the news surrounding this new proposal by the Government?
They are also known as Home Information Packs, and will become mantadory from June 1, since the Government’s finally given it the go ahead.
What does this mean if you are a Homeowner? Well HIPs mean that the consumer is meant to be protected by regulations created by this new law, which every agent will have to follow.
But those agents who do deal with HIPs, must also be a member of The Ombudsman for Estate Agents as a rule.
Within the national press is where the Government has begun it’s marketing campaign for consumer awareness. Gradually we are being more informed about the HIPs packs, and before starting the sale of their homes, sellers also ought to have one.
It was created to safeguard against any foulplay by the agent to the consumer, and it is advised that seller should ask if an agent is a part of this scheme, the Redress Scheme. As it only costs about 100 pounds a year per office to have an agent signed up, make sure that you as a seller are aware of it.
An indication of what the HIP has to contain:
- A sale statement (to summarise terms of sale)
- An Energy Performance Certificate
- Leasehold information (if applicable)
- An index to show contents
- Commonhold information (if applicable)
- Evidence of title
- Standard searches (water plus a drainage and local authoriy search.
And other optional documents might include:
- Guarantees and warranties
- A Home Condition Report
- Other searches relevant to a certain area (such as floodin/mining)
Although there are claims that there won’t be enough ‘energy assesors’ after June 1st, at the same time the public are assured this won’t be the case when the time arrives. The only part that could add value to a property is the energy performance certificate, and can be worked on a part from an HIP.
Other claims are that HIPs will cost 1,000 pounds when actually they only cost around 300-500, including an EPC (Energy performance Certificate). The public are also assured that consumers won’t have to pay this amount upfront. As a result a huge 5,000 people have signed and petitioned via email against HIPs, as they say this new rule means people will have to have a Pack costing about 500 pounds before their homes can go on sale.
A variety of options are said to be available to the consumer, such as the option to incorporate into the Estate Agency Services, or deferred payments that are interest free.
But despite a consultation document published by the Department for Communities and Local Government only last week, The National Association of Estate Agents gave caution that the document hasn’t really done enough to calm people’s concerns against it.
Hopefully with multiple suppliers the cost of HIPs would not be too high. To ensure the consumer is protected as much as possible, Estate Agents and Consumers are advised to only purchase HIPs from suppliers who comply with the HIP Code.
In an attempt to avoid the need for a HIP, some agents have launched campaigns for people to put their homes on the market early. If consumers listen to the campaigns then the market will be slightly distorted during early summer. But apart from that this should not have an effect for the rest of the year.
There are worries that despite the Government’s concessions, lacking the ability to market a property minus an HIP will inevitably have a massive effect on the property market. This could mean that if sellers the choice to choose, they are twice as likely to think twice about spending that extra few hundred pounds on an HIP.
For consumers who choose to have an HIP, rumours have it that there isn’t enough evidence to suggest it will be beneficial in the real market.
When HIPs come into effect on June 1st 2007, it could mean that sellers won’t be allowed to put their properties for sale until 14 days have passed, or until the documents are signed.
One highlight seems to be that the Government has mentioned it’s consultation document will give a new guideline to local authorities, giving quick access to all search information, setting charges that are fair to consumers, and speeding up the process after things like area trials show that following all protocall could create delays of four weeks or longer when producing packs.
If you need to sell property quickly Soda Estates can help you. As we are a private buyer and not an estate agent you will not need an expensive HIP.