As of today, properties with four bedrooms or more will require a Home Information Pack (HIP) when they are put up for sale…
The pack will bring a lot of the information previously gathered throughout a purchase to the front of the process, such as standard searches, sales statements, and evidence of title.
In addition, a new Energy Performance Certificate (EPC) will be included in the pack which will rate a home’s energy efficiency and make suggestions for reducing carbon emissions and energy bills.
Today the Association of Home information Pack Providers (AHIPP) dispels the myths recently bandied around by opposition spokespeople and the Tory party and welcomes this much needed reform to the house buying and selling process.
Rebranding the home
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Owners of four bedroom properties will re-brand their homes as ‘three bedroom and a study’ – contrary to Tory propaganda the likelihood of a consumer opting to re-brand their four bedroom home as a three bed is unrealistic and impractical and it would take an irresponsible agent to suggest this.
A four bedroom home commands a much higher price than a three bedroom property and sellers are not going to be willing to knock thousands of pounds off the price of their home, simply to save themselves the estimated £300 to £400 that it will cost them to acquire a HIP – a pack that will actually aid the sale of their home.
In addition, a large number of house hunters commence their search for a new home online. With the majority of property searches asking for a prospective buyer to refine their search by number of bedrooms – those re-branding their homes as three bedroom will be severely limiting their exposure to potential buyers.
Fudging and cancelling
‘Fudging the date’ when the house went on the market – HIPs will help to improve the house buying and selling process and will provide buyers with upfront information on the property from the offset.
If a seller refrains from having a HIP it may indicate to buyers that they have something to hide. In addition, if a buyer is deciding between two similar properties and one has a HIP, this could prove the deciding factor, if speed is of the essence.
Sellers will risk paying the £200 fine rather than paying for a HIP – this is a fact that has continually been mis-reported. The £200 fine for not acquiring a HIP is a repeatable fine and not a one off penalty.
It is the person responsible for marketing the property that will be fined if they do not obtain a HIP – in most cases this is the estate agent. Estate agents are unlikely to put themselves at risk of repeated fines to save the vendor an estimated £400.
Sellers could order a HIP and then cancel the order – according to the advice that we have this would be illegal. Further more, the HIP Code of practice, designed to protect consumers and their estate agents, specifically prohibits this.
Plunging the market into chaos?
Mike Ockenden, Director General, AHIPP concludes: “HIP are finally here and should be welcomed by consumers, environmentalists and industry alike. The key message that appears to have been lost over the last year is that HIPs are a good thing.
“they are not here to ‘plunge the market into chaos’ as mischief makers would have us believe, but instead they are here to help improve the house buying and selling process for all involved – bringing vital information to the front of the process that, in the long term, will save consumers money as well as aiding a faster and more transparent process.
“There has been much mis-information and misguidance from various opposition spokespeople but the reality is that HIPs are here and we now need to embrace them and ensure their smooth and successful implementation for the benefit of all involved.
“This is the first major change to improve the house buying and selling process for over 75 years and as with any major reform there is going to be a period of bedding in as consumers and the industry alike adjust and familiarise themselves with the new packs. However, we must keep in mind the long term improvements that packs will bring to our long suffering home owning public.”
