The Government has announced that it is extending the transitional arrangements introduced last year, enabling properties to be marketed once the Home Information Pack (HIP) has been commissioned. The Government had intended to introduce "First Day Marketing" on 1 June 2008, meaning that sellers would have to have a HIP ready with certain documents, before they could begin marketing the property. This has now been extended until 31st December 2008.
A temporary provision requiring HIPs to include the “Lease” only, and to “authorise” other leasehold documents was also due to expire on
Head of Conveyancing at Frettens, Ian Fretten, says "Basically, this means that properties can still be marketed PROVIDED a HIP has been commissioned and is expected to be ready within 28 days. Also, the only leasehold document currently required in a HIP is a copy of the lease. Both provisions will be reviewed again prior to 31 December."
The Minister for Housing and Planning, Caroline Flint, said "I am laying amendments to the Home Information Pack Regulations to extend the temporary first day marketing provision, and to extend the temporary provision requiring HIPs to include the “Lease” only and to “authorise” other leasehold documents, from 1 June to
"The temporary first day marketing provision allows a property to be marketed without a HIP where the documents required for inclusion in the HIP have been commissioned and paid for, or arrangement for payment been made and are expected to arrive within 28 days."
"We introduced the temporary first day marketing provision in order to help smooth the implementation of HIPs, and our evidence shows that it has been effective in doing this. However, we believe that a further period of the flexibility provided by the measure would be prudent. I am, therefore, laying an order to amend the Home Information Packs Regulations to extend the provision from 1 June to
On leasehold documents, Caroline Flint said "The temporary provision requiring HIPs to include the 'Lease' only, and to 'authorise' other leasehold documents was introduced in response to concerns about delays and additional costs in obtaining leasehold information. This provision is also due to expire on
"At the time the provision was introduced we also commissioned Ted Beardsall, Deputy Chief Executive of the Land Registry, to undertake a short assessment of the scale and nature of the problems with leasehold information and to advise on possible solutions. Ted Beardsall’s assessment confirms that there are a number of longstanding issues in the provision and cost of leasehold information, which HIPs have thrown the spotlight on; agrees that the inclusion of all leasehold information prior to marketing would cause serious difficulties; and recommends further work to resolve them."
"What is clear from the assessment is that it would be premature to lift the current temporary requirement for the lease only, before carrying out the further work it recommends. I am also, therefore, laying an order to amend the Home Information Pack Regulations to extend the temporary provision for leasehold requirements from 1 June until
"In the interim period, I have asked Ted Beardsall to convene a working group of key industry representatives to develop the options identified in his assessment into practical solutions in respect of:
- the type of leasehold information that should be required within a HIP, and the form this should take, having regard to the information that buyers need, their availability and costs.
- practical steps for helping to establish good practice for landlord and managing agents in the provision of leasehold information.
The working group will report to the Housing Minister in order to prepare and introduce final measures from
Click here to read the full Government announcement.