29th March 2007
HIPs will make buying and selling property clearer, fairer and more robust
Lesley Sorridimi of leading Home Information Pack provider Hip Hip Hooray today released a statement in response to the Government's announcement on HIPs:
"There has been a lot of confusion surrounding HIPs but today's announcement is good news for consumers. The way has now been cleared for a smoother, more transparent process for home buyers and sellers.
For years the public has suffered in both cost and stress from a broken process which the property industry has failed to improve. Regulation is stepping in to make the acts of buying and selling property clearer, fairer and more robust. This will result in less broken chains and will cut the problems caused by sales that fall through.
The current property system favours sellers and penalises buyers; HIPs will give both parties an equal footing. For the first time buyers will be in a truly informed position. Few people would buy a car without an MOT and it will soon seem bizarre that we ever bought properties without a Home Condition Report (HCR) never mind a HIP.
CO2 emissions and rising fuel costs are two of the most pressing concerns in today's society; HIPs will empower buyers and sellers with information on both issues. The confirmed inclusion of an Energy Performance Certificate (EPC) will give buyers the chance to choose an energy-efficient home and also encourage sellers to make environmentally sound improvements to their property.
There have been suggestions that the cost of HIPs will result in less homes coming on the market, but there is no evidence to support this argument. The additional cost of HIPs will be minimal and not enough to stop serious sellers. At present it costs more than £5,500 to put a house on the market and HIPs will cause this figure to rise by less than £200. The difference is that the cost will now sit with the seller rather than the buyer. There is likely to be no cost-increase to the home owning community as a whole because HIPs will help drive out the cost of failed transactions.
It has now been confirmed that an HCR will not be legally required, however we are anticipating a high demand to be driven by the public. These comprehensive reports will act as an additional seal of approval; building trust amongst buyers. Faced with a choice between a property with an HCR and one without, many buyers are likely to wonder what's wrong with the property which doesn't have this additional document.
The property industry has been preparing for this legislation for years and everything is in place for 1st June. There will be more than enough home inspectors to meet demand and we are expecting a very competitive marketplace for HIP providers.
The purpose of this new regulation is to make the buying and selling process smoother and more transparent and the introduction of HIPs is going to give the home buying and selling public the positive results they deserve."
Notes to Editors
For more information please contact
Vicky Hoad/Patrick Irvine/Stephen Baker
Blue Rocket Group
01273 779 196
Vicky@bluerocketgroup.com
