24/03/2009
HIPs are Changing….Again !!
From 6 April 2009 important changes are being introduced to Home Information Packs (HIPs).
HIPs will have to be available on the first day a property is marketed. Up until now it has been enough for the HIP to have been requested to allow you to put your property on the market.
In addition the contents of a HIP will be changed to include a Property Information Questionnaire. The Local Authority Search remains compulsory but Sellers will now have up to 28 days to provide it as it is no longer possible to obtain search insurance for any missing information. A property can be marketed without the search information as soon as the basic HIP has been assembled.
HIPs have always been controversial since their introduction as they cost the seller around £250 – £300. Many people are calling for HIPs to be shelved in light of the effect of the “Credit Crunch”. There is concern that the up-front cost of a HIP could further discourage potential sellers. The Government have defended HIPs and claimed they have "a real potential benefit to consumers” as information is available at the outset to increase certainty and inform buyers about a property before they incur costs. Also, informed choice by buyers at the start of the process may help reduce delays later on and reduce wasted time, and consequentially costs for Sellers in the long run.
It remains to be seen what effect the changes will have on an already depressed housing market. |
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