There has been a lot of talk from the Conservative party about scrapping Home Information Packs if and when they are elected.
Pali has been providing Conveyancing Searches to Solicitors and Property Professionals since 1999. With the introduction of Home Information Packs in 2007 their client base expanded to include HIP Providers, Estate Agents and members of the public. The website Hipview was set up to assist people in the ordering, tracking, viewing and storing of Home Information Packs.
While the company has changed to accommodate the new legislation of the Home Information Packs, it is not reliant on them. However it is Pali’s opinion that they should not be scrapped, but instead worked on to improve them and fulfil the function they were originally put in place to do.
The main objectives of the HIPs should be:
• To give potential buyers information upfront on properties they are considering purchasing.
• To speed up the conveyancing process.
• To cut down on duplication of reports being purchased by multiple potential buyers.
• To give all interested parties information of energy consumption and CO2 emissions, indicating where financial savings on fuel bills can be made and reducing climate change.
Taking these points into consideration, improvements could be made certainly on the first two. The Home Information Pack was originally intended to include a condition rating on the property in the form of a Home Condition Report. In Pali’s opinion this was the most important and useful element of the pack for potential purchasers. When the Labour Government decided to make this document optional it seriously damaged the pack. If the Home Condition Report, or another similar survey was re-introduced as a required component, in Pali’s opinion, the packs would be of much more interest to potential purchasers and save hundreds of pounds on wasted surveys.
Home Information Packs have undoubtedly all ready speeded up the conveyancing process, however it doesn’t go far enough. With the implementation of an Exchange Ready HIP, the conveyancing process could be much quicker. The Exchange Ready HIP would have a lot more information added to the HIP which would normally be enquiries made by the purchasers solicitor once sale was agreed. Other documents can also be included such as fixtures and contents forms, draft contract, the Property Information Form etc. It would be advisable that the Exchange Ready pack be produced in association with a Solicitor, however AHIPP are currently working on a form, the PDQ, which would cover most of this information.
Simply implementing both of the above points would make the Home Information Pack a much more worthwhile product, but they are by no means the only improvements which could be made. What is certain is scrapping the HIPs completely would be a mistake, with a little more work all of the time and effort which has brought the packs to this point would not be wasted. In scrapping them and going back to the drawing board the added expense would be phenomenal. One thing most people are agreed on is the process buying and selling of property needs improving and information upfront seems to be the best way to achieve this goal.
Your comments are welcome.
Comment by John Mathews (DEA) — October 21, 2009 @ 4:25 pm
There are currently approximately 14000 energy assessors. Most are HIP providers. Not to mention all the search companies.
The housing market downturn cost countless jobs in the estate agent industry and with the conservatives plans I have no doubt many more jobs are on the line if the conservative party are elected.
Comment by Jeremy Tyler — October 25, 2009 @ 8:09 pm
There are so many mythical stories about HIPS.
Myth 1: HIPS delay the process.
Fact: I run the Pali office in Basildon, we get properties on the market within 24 hours, normally before the Estate Agent has even taken the photos
Myth 2: HIPS take out the speculative seller
Fact: This are normally called time wasters, I spoke to an agent who says HIPs have taken the time wasters out the market and only now have genuine sellers on his books
Myth 3: Many agents flout the law and dont get HIPs so they are a waste of time
Fact: Many agents do need education, just because they dont get them isnt a reason to scrap them. People speed in cars, this would be no reason to suspend the speed limit, educate the agent then fine them.
Myth 4: HIPs cost money
Fact: HIPS from Pali cost £270 inclusive of VAT, all the documents are needed for a transaction, but if you buy and sell a property, you wont pay more than pre HIPS. They also help first time buyers as they do not need to pay for the searches
Myth 5: Searches go out of date
Fact: All parties involved with the home buying process agree that information should be upfront. Critics of HIPS say they should be abolished and agree the process should be changed but cannot come up with an alternative.
Lets not throw the baby out with the bath water but come up with a product that suits its aims and improves on the HIP to speed up the process further, the cost is not excessive at present.
Comment by Stuart Richards — November 2, 2009 @ 11:28 am
If the Conservatives intend to chuck out HIPs and go back to the old system they must be mad. It is my hope and belief that they will come up with another system with a bright new shiney name which, hopefully, will be an exchange ready HIP.
Comment by Helen Brownbridge — November 2, 2009 @ 3:19 pm
Its not just Estate Agents and Conservatives that need educating, solicitors need to recognise the true value of HIPs, stop running them down and look to the personal search companies (acredited PCCB search companies of course)that can speed up their delivery and reduce time and cost for themselves and their clients. Come on board and devise a better system, or just add to and improve the current HIP.
Comment by David Murray — November 2, 2009 @ 7:39 pm
There is no point of getting rid of somthing that is just starting to work
so just make them better
Comment by John Mann — November 2, 2009 @ 9:53 pm
We find that estate agents are against them and probably always will be. The problem is that, in some instances the myths are reality.
They can delay the marketing process if the property is unregistered and the paper SIMR can take up to 5 days to arrive from Land Registry. Also, if the PIQ has to be posted to the vendor this can take up to 5 days.
To the public the cost can be high as estate agents add up to £100 on the HIP they purchase from us.
Speculative sellers are reluctant to come into the market and the vast majority may be time wasters but some turn into sales and the estate agents see this as lost sales.
We have a real job on our hands to deliver a product that is seen as improving the process and adding value. Adding the HCR (or similar) and introducing an exchange ready HIP will provide more information for buyers upfront. Abolishing first day marketing will allow properties to go on the market quickly. Perhaps selling direct to the public will keep the costs down.
Comment by Tony Smith — November 3, 2009 @ 9:00 am
The HIP’s have brought the cost of buying a property down (all relevant searches done etc, etc), which has got to be good news for the struggling first time buyers.
I agree that people need to be educated about what the HIP is actually about
Comment by Jeanette Leigh — November 3, 2009 @ 9:38 am
HIPs are seen as a necessary evil by the general public,because they don’t understand them or the value they can bring to the conveyancing process. There are also a lot of people producing HIPs who shouldn’t be which does not help. Now they are established in the market they need to be improved to facilitate an exchange ready product and made more consumer-friendly and then they will hopefully be embraced by the solicitors and Estate Agents.
Comment by Lisa Marshall — November 3, 2009 @ 2:06 pm
Educating the public is one of the most important issues, if the public were more onside, the conservatives would not be so keen to scrap Hips.
Solicitors are using the searches in the pack, so still saving the client money and also speeding up the conveyancing process, why are the public against this??
We need to make the hips better, exchange ready hips sounds like the best way to go
Comment by Ben Naylor — November 3, 2009 @ 4:05 pm
The introduction of the Home Condition Report would really enhance an exchange ready HIP. As we are part of a surveying firm, we see too many sales fall through at the last minute due to previously unknown defects within properties.
Comment by Jon Coupland — November 3, 2009 @ 7:15 pm
HIP’s are a perfect vessel for delivering information, they are ‘bobbing about in the water’ at the moment, they need direction, someone to take hold of them by the scruff of the neck and drive them forward, future Governments need to embrace the need for information by the common man, buyers are no longer clueless morons that are going to take for granted whatever they are told, today’s buyer are informed and in the know, the Home Information Packs help to provide the facts about a property - BEFORE THEY BUY IT!
Comment by Andy Bishop — November 4, 2009 @ 9:17 am
The reason HIP’s were introduced was to speed up the process of buying and selling of a property. Great idea. Unfortunately the current requirements haven’t speeded up the process enough. Future governments need to review the requirements of a HIP to make a significant reduction in the time between and offer being accepted and completion of the sale.