Home Information Packs - Do they have a Future? |
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8th July 2009
Grant Shapps, Shadow Housing Minister, confirmed that the Conservative pledge to scrap HIPs "immediately" would be included in the Conservative Party manifesto. They will keep Energy Performance Certificates although they will be "less bureaucratic" and revert to the pre-April timing.
Bushells has over 1000 properties on the market, yet only a very small handful of buyers request or even want a copy of a HIP. Simply, few people within the property industry are qualified to read and understand the legal documents contained therein. Additionally, whilst we see the merit in Fixtures and Fittings information, these are based upon the offer received. Such items may not be included if a buyer wishes to negotiate on the asking price.
HIPs have improved the speed of some transactions and solicitors have mixed views of the benefit they provide. Nevertheless, there is no doubt that those who need to sell as a result of financial difficulties are disadvantaged when asked to pay over £200 in advance to comply with the Governments first day marketing rules.
The main issue is that HIPs ended up as a compromise. They have not set out what was achieved and at a time where the Housing Market needs stimulation, they really dont help. Government has sought input from Stakeholders yet have failed to listen to the opinions of industry professionals. They have only listened to HIPs providers who clearly have a vested interest in their continuing existence.
Perhaps their days are numbered and instead, Government can focus upon an overhaul of the sales process rather than an ineffective and unwanted additional cost.
