Introduction
of HIPs
After much talk and delays Home Information Packs are finally
launched today – 1 August. From today all properties
with four bedrooms or more being put on sale on the open market
must have a Home Information Pack (HIP). Each HIP must contain
evidence of ownership, planning or building consents, local
search information, and an Energy Performance Certificate.
Estate agents have been warned by the Office of Fair Trading
(OFT) hat they must make sure that home sellers have HIPs for
their homes.
Head of consumer protection at the OFT, Mike Haley, said: ‘It
is important that agents are aware of their obligations and
the possible consequences if they fail to comply. . . This
could trigger an investigation into an agent’s fitness
to continue estate agency work.’
The Government delayed the introduction of HIPS from 1 June
until 1 August when it was realised that there simply weren’t
enough home energy assessors qualified to give Energy Performance
Certificates and the requirement was cut back to homes with
four bedrooms or more.
There are now enough trained energy assessors, and it is expected
that HIPs will be introduced for all properties as soon as
possible. There have been some suggestions that four bedroom
houses might be described as “three bedrooms and a study”,
but the reduced marketing opportunities and lower selling price
just to save £350-£500 for a HIP make this a rather
pointless exercise. In fact the cost of a HIP represents a
very small percentage of the selling price of a home.
HIPs were a Labour idea many years ago. The objective was
to make the process of buying a home easier and faster. An
important part was to have been a survey-style home condition
report, but that was removed after complaints in 2006. Although
most estate agencies have agreed deals with home pack providers,
it is possible for home sellers to compile one together themselves.
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