The consequences of the abolition of the Home Information Packs

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The UK housing market has been boosted by the abolition of Home Information Packs (Hips), according to Agency Express the largest ‘For Sale’ board contractor in the UK.

The latest Agency Express Property Activity Index shows that the UK housing market received a “huge” boost last month with the abolition of Home Information Packs (HIP) which played an important part to a substantial increase in housing activity.

But what is the purpose of the HIP? According to the website “A HIP is a set of documents that provides the buyer with key information on the property and must be provided by the seller or the seller’s agent. It is a legal requirement to have a HIP and you can’t market your property without one. The HIP lets buyers see important information about the property at the start of the process, free of charge. This means there is less chance of buyers becoming aware of any surprises at the end of the process.”

The following documents must be included in your HIP:

Freehold properties

  • Home Information Pack Index
  • Energy Performance Certificate (EPC) or Predicted Energy Assessment (PEA)
  • Sustainability information (required for newly built homes)
  • Sale statement
  • Evidence of title
  • Standard searches (local authority and drainage and water)

Leasehold properties

  • All the compulsory documents above
  • A copy of the lease

Stephen Watson, Managing Director of Agency express , said that “It appears that the result of the General Election has had a direct and positive impact on the housing market. The decision by the new coalition Government to immediately suspend the requirement to have a HIP seems to have taken away a significant obstacle that has been discouraging homeowners from putting their properties up for sale”.

The abolition of the packs by the new coalition Government aims to boost the housing market by reducing the burden of costs for sellers. Indeed, Housing Minister Grant Shapps said: “By suspending Home Information Packs, it means that home sellers will be able to get on with marketing their home without having to shell out hundreds of pounds upfront,” and he also added: “We are committed to greener housing so from now on all that will be required will be a simple energy performance certificate.”

On the other hand the side effect of suspending the HIP is that thousands of jobs losses would be the cost to pay in order for property owners to reduce their cost before marketing their property.

For further information on Landlords Insurance, please visit Discount Landlord Insurance website.

2nd June 2010