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NEWS article 14th December 2007
HIPs rollout to all properties: 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.
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 James Cartwright, Managing Director of HIPs company House Inspect Ltd.
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.
June 2007 – HIPs delayed to August.
Apart from in a few special circumstances, from 1st August 2007 if you place your 4-bedroom (or larger) property on the market without having a Home Information Pack (HIP) you will be breaking the law.
However, the government will, until the end of the year, allow sellers to put their properties on the market if they have merely commissioned a HIP. As a potential seller, you alone will be responsible for the cost of having this HIP prepared.
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Will you be looking to buy a property in England or Wales after 1st August 2007?
If so, the person selling the property may well be required to provide you with a HIP on
the property and you will need to know what you need to do with it.
Give us a call on 01489 560 881 and we will advise you.
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What is a Home Information Pack?
A HIP is basically an indexed set of specific legal documents.
Some documents MUST be included in the HIP whereas others are optional and can
be included at the seller’s discretion and at an increased cost.
The most important compulsory documents are:
OwnersHIP details (copy title deeds)
The results of legal and other important searches
An Energy Performance Certificate. This is part of an urgent drive to make homes more
energy efficient and meet EU directives to reduce carbon emissions.
There are many other documents which can optionally be included such as a Home Condition
Report (similar to, but not as detailed as, a survey) and a list of contents included in the
proposed sale. Choosing to include these may help you to sell but will also add to the cost
of having the HIP prepared.
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What is the purpose of this HIP system?
The idea is to speed up the conveyancing process by giving property buyers as much
information as possible BEFORE they make an offer. Without the HIP system the number
of transactions which are delayed or fail is higher, as in many cases vital information
comes to light only after an offer has been accepted.
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How can PSO help you?
The PSO Home Information Pack service is available to anyone buying or selling property
in England and Wales. So whether you are a seller or a buyer, PSO has a comprehensive and
flexible Home Information Pack service that can be tailored to suit your needs and budget.
By choosing PSO to prepare your HIP you retain your independence and the freedom
to change estate agents if needed as you will not be tied in to their own HIP service.
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How do I find out more?
Whether you are buying or selling a property you can call us on 01489 560 881 to talk to a member of our team about Home Information Packs or obtain a quotation. We are only a phone call away.
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May 2007 - Property values in 2007
House prices are set to rise again in 2007, although less steeply than in the past 12 months. 2006 saw unexpectedly high price increases of about 8% on average in the mainstream UK market and up to 25% in the best areas of central London, such as the West End and Mayfair.
Leading market experts predict lower price inflation for the year ahead. Amongst the estate agents' forecasts are Cluttons - 3%, Hamptons and Jones Lang LaSalle - 5%, Knight Frank and King Sturge - 6% and Savills - 7%. Amongst the property economists, the Royal Institution of Chartered Surveyors says 3%, Hometrack 4%, and the big mortgage lenders at the Halifax/Bank of Scotland and the Nationwide Building Society are forecasting 5%.
Although their forecasts differ, they demonstrate a number of common trends that combine to push up prices. Firstly, stamp duty paid when we move house is a disincentive to step up the property ladder. "80% of us move within a 20-mile radius and don’t move to bargain properties in lower priced areas. Therefore we have to stump up vast sums for stamp duty with no obvious advantage" says Richard Donnell of Hometrack, a property consultancy that advises local authorities and government departments.
Secondly, the first half of 2007 will be busier than the second as agents are expected to urge sellers to put their homes on sale before the arrival of Home Information Packs in June.
Thirdly, as affordability is tight across the country, first time buyers will find it tougher to purchase.
"Wage growth is well below property price increases, so people will feel the squeeze across most parts of the country” says Liam Bailey, head of research at Knight Frank.
Fourthly, there will be strong regional differences. Prices will rise, possibly 10% or so, in London, the south east of England, Scotland and Northern Ireland but elsewhere house price growth will be much lower, especially in northern England.
Pundits also agree that the strong national economy and need for more homes - fuelled by higher divorce rates, immigration and people living longer - will mean that demand for properties on sale will outstrip supply.
The result? Prices will continue to rise.
As Yolande Barnes of estate agent Savills puts it: "There's no mechanism for prices to slow while the economy remains buoyant and when there's not enough property available of the right type in the right places."
April 2007 – Leasehold or Freehold? FTBs may not understand.
As interest rates continue to rise and with mortgage lending increasing, a report by AA Legal Services questions whether first-time buyers (FTBs) fully understand the complexities of the UK Property market.
More than two in five FTBs do not know the difference between leasehold and freehold UK Property, with this figure increasing to nearly 60 per cent with homebuyers aged 18 to 24-years-old.
Around one in ten people in this age bracket thought the term leasehold meant a property could be rented to tenants, while two per cent thought it meant the homeowner was exempt from paying council tax.
Nine per cent believed freehold related to a property with a lease of 50 years or more, while six per cent wrongly believed these properties were exempt from capital gains tax.
"Our research suggests that many homebuyers are so desperate to get onto the property ladder that they may be over-looking vitally important basic legal principals," James Molloy, head of AA Legal Services said.
"For years, the legal community has not helped much in terms of engaging the public on legal aspects of home buying, something AA Legal Services intends to put right by helping the public understand legal issues in plain English, so that they can make informed home buying decisions and feel in control of the process," he added.
Interestingly the research also discovered the emergence of a north-south divide of UK Property, with people north of the Midlands unable to explain a leasehold property as well as those homebuyers in the south
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