Housing Minister, Yvette Cooper, has announced today that all properties marketed for sale from 14 December will have to a Home Information Pack. The Government intends the extension of the scheme to include one and two bedroom properties to help first-time buyers and revive the housing market.
Crucially, what is not clear from today’s announcement is whether properties which were put on the market prior to 14 December will require a HIP from 14 December. We will update you with clarification on this important point as soon as more details are released. It could potentially be a useful marketing strategy for your agency during the next 3 weeks.
It also appears as though the transitional provisions will be extended from 1st January to 1st June 2008 allowing a property to be marketed without a HIP in place provided the HIP has been commissioned.
The Announcement in More Detail
Ms Cooper said 60% of the housing market is already covered by HIPs, and she believes that the structures are now in place to broaden the scheme.
Although critics say that the extra cost of the packs for sellers could lead to fewer "starter homes" being put on the market, Ms Cooper considers that those trying to get a foot on the housing ladder will be better off by getting important details on properties for free. She said: "Information such as searches for which they would previously have had to pay will now be included in the HIP paid for by the seller, reducing the costs of the first step on to the property ladder."
The Government has also conducted monitoring and analysis of the implementation programme to ensure continued smooth roll out. Early monitoring shows:
- Our HIPs are taking on average 7 to 10 days to prepare
- The majority of property, and drainage and water searches, are being delivered within 5 days
- Energy Performance Certificates (EPCs) are being prepared on average within 2 to 4 days
- On average, a HIP costs between £300 and £350. Most of these are not new costs, as they cover the cost of searches and other documents which have simply been transferred from buyer to seller at the beginning of the process. The Energy Performance Certificate (EPC) is of course new but provides consumers with valuable information of the costs of running their home.
- Competition from HIPs is reducing the costs of average property searches. 85 local authorities have already reduced their charges by £30 on average.
Frettens’ HIPs
- We have prepared numerous HIPs now, on an average of one new HIP instruction per day, before the market slowed down and have a fully trained member of the team dedicated to preparing the HIP and updating the client/agent as to its progress.
- The Frettens HIP is competitively priced at £299 (inclusive of VAT and disbursements)
- We have been completing HIPs within 7 days of the order, on average
- Our HIPs are provided online, by CD for use of the buyer’s solicitor and 2 bound hard copies for use in marketing the property
- HIPs can be ordered by agents or by individual sellers via a simple form on our website
- Our service offers the reassurance of using a well established local firm of solicitors whose large team has many years of property transaction experience
- Unlike many other Pack providers, Frettens do not make any additional charges if the property is leasehold or unregistered. The only additional fee for leasehold property is the fee charged for required information by the managing agent
- Frettens HIP fee is based on Frettens carrying out the conveyancing which will be on a no sale, no fee basis.
Click here to Order a HIP
MORE INFO: All residential properties require a HIP from 14 December 2007
MORE INFO: What exactly are HIPs? Read our information on Home Information Packs
MORE INFO: Frettens produced their first HIP in two working days, within the first 10 days of the scheme