HIPS Explained

Has anyone a good word to say about the introduction of Home Information Packs says Neil Cummings Company Secretary of Patchings.

Well, here are some straightforward facts about what is undoubtedly one of the most confusing pieces of legislation to be brought in.

Fact: Home Information Packs will be a legal requirement for all homes coming onto the market after December 14 2007 and that includes houses or flats from one bedroom upwards.

Fact: Provided that the Home Information Pack has been commissioned the property can be marketed straight away, even if the pack is not ready.

Fact: From June 1 2008, government legislation will require the pack to be completed before marketing... this will be a major change as same day marketing may not then be possible.

Fact: A survey known as a Home Condition report remains an optional part of the pack at this time and is not mandatory; however each home must have an Energy Performance Certificate so that it is rated in much the same way as a new washing machine would be.

Fiction: The packs cost the earth... they start from around £299 plus VAT

In most cases your selling agent will arrange the provision of the pack for you.

So is this all just a piece of unnecessary legislation and more costly paperwork?

I have never been in favour of them as they front-end load the seller with costs that were traditionally borne by the purchaser, involve a lot of paperwork and delays, with little benefit to the time-consuming conveyancing process, and will do little to prevent the problem of abortive sales.

However, they are here and we have to make the best of them. One benefit is that with some upfront cost people are less likely to put their house up for sale unless they are serious about doing so.

I so often hear that a seller has changed their minds and withdrawn, causing grief to possible a chain of people... anything that makes sellers more committed about moving before putting their home up for sale can only help.

However, many people have been panicking about getting their property on the market to beat the HIP and really with the cost on one running at less than 0.2 per cent on a house worth quarter of a million pounds its not worth the Hip-headache!

Your estate agent will guide you through... it's why we are here. So please don't be afraid of the HIP.

Neil Cummings has been in the Property Industry for 35 years.

Please note that this article is correct at time of going to press but the author cannot be held responsible for any changes that subsequently occur to the legislation.