HIPs: Home Information Packs HIPS Roll Out To All Houses

Date Published:

27/05/2008

Few topics have aroused as much feeling among property owners and professionals as Home Information Packs, which from 14th December 2007 apply to ALL homes in England and Wales. So are HIPs delivering what the government promised- to make house-buying easier and less stressful, or will things only get worse?

Are There Enough Energy Assessors?

HIPs may be a watered down version of the original concept which was to contain a Home Condition Report, but they do require an Energy Performance Certificate (EPC) from an accredited Domestic Energy Assessor (DEA) to be included.

After new legislation came into place on 1st January 2008 all vendors now need one before their homes can go on the market. The Department for Communities and Local Government (CLG) says it has enough energy assessors on its books, although doubts have been raised as to whether this is the case, particularly in London and the South-East. Any shortages in numbers will inevitably hold up house sales.

What’s The Story With Local Authority Searches?

Local authority searches, another component of HIPs, are being limited in some areas. "We are lobbying the government to put pressure on local authorities to relax restrictions," says Dominic Toller of HIP provider LMS. "But this isn't a situation that the HIPs have created as some authorities have always been slow in dealing with requests from solicitors- in fact it's more transparent now."

Yet another potential problem is that certain lenders-including HSBC, are refusing to accept personal searches as part of the HIP, preferring local authority searches instead. This means that vendors will have to pay an additional search fee of £200 to £300 on top of the HIP fee. But, according to the CLG, the issue is not about HIPs, as some lenders have always taken this stance, and 9 out of the top 10 lenders do accept personal searches.

What Do Estate Agents And Surveyors Think?

The National Association of Estate Agents has always been opposed to HIPs and feels that it is far too soon to be extending the rollout. "In general the feedback we have received from members indicates that there is a certain amount of public confusion since HIPs were introduced," explains Chief Executive Peter Bolton-King. "Agents have reported a reluctance from owners of four-bedroom properties to put their houses on the market due to a concern that they will have to pay for a HIP if the property is withdrawn. This is something we warned might happen and will not help a hesitant market."

Another critic, the Royal Institution of Chartered Surveyors (RICS), agrees. "The RICS is compiling figures but anecdotally I'd say that there's quite a dramatic decrease in the number of four-bedroom houses on the market compared to this time last year," says spokesperson Jeremy Leaf. "Some of this is attributable to higher interest rates but HIPs have had an effect."

Not surprisingly, the Association of Home Information Pack Providers (AHIPP) sees the outlook as less bleak. "The implementation of HIPs has run smoothly on the whole, with no major problems reported," says Paul Broadhead, Deputy Director General. "AHIPP members are reporting turnaround times of less than 48 hours with an average cost of £300-£400. Consumer feedback has been good and we are looking forward to the rest of the rollout."