Hips rollout to all properties

Friday, 14, Dec 2007 08:43

Every property sold in England and Wales will require a home information pack (Hip) from today.

New regulations to extend the controversial scheme to one and two-bedroom properties were introduced at midnight, bringing an end to the three-stage introduction process.

It is hoped the government-backed plan will improve efficiency in the property market, giving buyers all the information they require to complete a purchase quickly.

The energy performance certificate (EPC) element of the pack is also included as a method of reducing carbon emissions.

However, the scheme has proved controversial, with the Conservative party pledging some weeks ago to scrap Hips should it return to power.

Industry figures have also railed against the policy.

"Our research shows they knock speculative sellers from the market," said a Royal Institution of Chartered Surveyors (Rics) spokesperson.

"Up to 20 per cent of people put their homes on the market with no initial intention of selling, but then half of them change their minds when they get a good offer.

"Hips will put an end to that and shrink the market".

The final stage of the roll-out brings to an end a protracted implementation of Hips, after a gradual implementation after August 1st 2007.

Delays have been caused by a lack of qualified inspectors and opposition from the property industry.

"We welcome the full rollout of Hips today, in particular because of the help they give to first-time buyers - but this is only the beginning," said director general of the Association of Hip Providers (AHIPP), Mike Ockenden.

"We are now looking to work with all other industries involved in the home buying and selling process to develop and improve Hips and their content, so they can be fully incorporated into the house buying process."

Hips presently cost £300 - £350 with the costs met by the seller of the property.

Providers claim they are assembled in an average of three to five days, but there are reports of the process taking several weeks.

One key tenet of the scheme, the home condition report (HCP) was dropped from the scheme after industry opposition in 2006.

This has damaged the effectiveness of Hips according to some.

"It's very difficult to disentangle the precise effect of Hips," said Peter Bolton-King of the National Association of Estate Agents (NAEA).

"Are they improving the buying and selling process? It's just not happening as they've been so watered down."

Still in the dark over home information packs? Check out the aboutproperty.co.uk Hips guide.