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Latest News - June 2010
Update on Home Information Packs
As from midnight on the 20th May 2010 it was announced that with immediate effect the Coalition Government have suspended the use of Home Information Packs (HIPs).
Hips were originally introduced back in 2007 requiring sellers to provide specific information usually supplied during the conveyancing transaction, at the point the property is first marketed for sale. HIPs have not been popular with sellers and legal practitioners alike.
From a seller’s point of view this additional cost very often met up front has been a deterrent to placing a property on the market. Legal Practitioners have felt that the packs were often poorly prepared and very rarely had the effect of speeding up the selling process as was the original aim. The announcement therefore to abolish the HIP’s has been generally welcomed and will hopefully provide a boost to the housing market as speculative sellers who were often deterred by the cost of the HIP may be encouraged to enter the market.
It should be noted however that an Energy Performance Certificate is still required in accordance with European law. This will cost in the region of £40 to £60 which is significantly less than the cost of the entire Home Information Pack. The Energy Performance Certificate provides information in relation to insulation and boilers. It provides a rating from A to G in relation to the energy efficiency of your home.