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Anyone missing a HIP?
Since December 14th 2007 home owners wishing to sell their homes have been unable to market there them without a Home Information Pack (HIP). However, it has come to light that recently more and more estate agents are breaking the law by not ordering a HIP for their clients.
The HIP was introduced by the government with the intention to speed up the length of a transaction, therefore inducing a faster exchange. This would be achieved by the pack containing all the information a potential buyer could possibly want know, including searches and an Energy Performance Certificate.
However, it would seem that with the extreme downturn of the property market, sellers are reluctant to pay up to £400 for a pack, which many think are unnecessary and valueless in the first place.
Paul Marsh, president of the Law society commented that “the evidence we’re receiving from right across the country, be it Cornwall, London or the North East of England is that solicitors are not receiving a HIP when a deal is struck”.
By law sellers have 28 days to purchase a HIP from the time they put their house on the market (if one has not already been commissioned by this time). Paul Marsh again notes that some solicitors are not receiving the pack in some cases not until the exchange of contracts.
Henry Pryor, who set up the property website “Primemove.com”, calculated that at least one in ten of sellers do not have a HIP. He also estimates that out of the 130,000 homes that went to market in May 2008, only 89,000 had a HIP.
Adding further fuel to the fire is a survey releases by the group SPLINTA, who campaign for the packs to be abolished. Some interesting results form the survey include that 63% of all those surveyed said that a HIP had not made any difference to the speed of the conveyancing process. Also, 35% actually thought that there introduction had slowed the transaction down.
Also, 95% said HIPS did not help prevent abortive sales, even with all the information which should be gathered prior to marketing the property.
The survey results can be seen on full at www.splintacampaign.co.uk
The debate as to whether HIPS are worthwhile shows no sign of subsiding anytime soon. In fact if anything it is likely to be back in the headlines in December 2008. From this month on the government requires that the pack be completed and ready before any marketing begins. How agents will respond to this remains to be seen, as does with this change to the legislation will be enforced upon an already struggling market and economy.
Author: Andrew Flint
Date: August 2008