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Home Information Packs: a peak inside |
| Tuesday, 1st November 2005 |
Home Information Packs (HIPs) will "be good for consumers and will cut costs and waste", Yvette Cooper, Housing Minister said yesterday, as the Government published draft regulations for consultation of the packs' contents. However, critics complained the packs would make the process more costly for sellers, and could have a huge impact on the stability of the UK housing market. |
At the moment more than a quarter of all sales fall through after an offer has been accepted, nearly half because of the problems which emerge when surveys or valuation are carried out.
One million pounds a day is wasted on failed transactions as buyers often spend hundreds of pounds on valuations, legal advice and searches for homes that ultimately fall through. By providing the same information at the beginning of the process Home Information Packs aim to prevent waste and significantly cut the number of sales that fall through.
Yvette Cooper said."Buying a home is stressful enough without losing hundreds of pounds on legal fees or valuations for properties that then fall through."
However, Peter Bolton King, Chief Executive at the National Association of Estate Agents, said: âFirst day marketing is an important right for every home owner. Forcing sellers to wait up to 14 days to create a home information pack before their property can be put on the market could have a huge impact on the stability of the housing market in general.
The limited lifespan of the home information pack also brings with it a host of problems. Namely that in a slow market there will be a requirement for updating parts of the pack once a sale is agreed, costing both time and money for home owners looking to sell a property. This is not helped by the fact that conveyancers and lenders will be unlikely to accept packs over a certain age.
There are also implications for those who want to put their home on the market to gauge interest in their property. This could prove to be expensive if they wish to take their property off the market for a period of time, putting it on again at a later date.
The government said the pack contents would include:
* A sale statement - describing the property being sold
* Forms the seller can use to give more information about the property and fixtures and fittings
* Evidence of title - from the Land Registry or copies of the deeds to the property
* Replies to standard searches - such as planning permissions, road schemes, water and drainage
* Warranties and guarantees - for building work
* A Home Condition Report including how energy efficient the property is
For leaseholders, the pack will also include:
* The lease
* Details of the landlord or managing company
* Regulations made by the landlord or management company
* Details of service charges and recent requests for payments for ground rent and insurance
* Information about current and planned works
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