The HIP Reform Group has released a white paper proposing to get Home Information Packs (HIP) in front of homebuyers more quickly and integrate them closely with advisers and the buying process.
Established in November 2009, and with 670 members, the HIP Reform Group launched the White paper called ‘New Year – New Start’ supported by industry members who agree HIPs should be kept not scrapped.
According to the author of the paper, Solicitor, David Pett, the proposal aims to convince all political parties that HIPs have value.
He explained that the paper contains a proposition that could be introduced with light touch regulation and is designed to bring practical and cost benefits to the consumer as well as property professionals.
The Group said if advisers can be instructed to prepare the HIP before offering a property for sale this would help the transaction move to exchange more efficiently. The HIP must be delivered to the buyer within 28 working days of marketing or 14 days from the buyer’s offer, said the Group.
To comply with European law, the only documents sellers need before marketing would be the energy performance certificate (EPC).
The Group said it envisages that the adviser will be either a lawyer or an existing home information pack facilitator with the responsibility for the preparation and delivery of the information and documents shared with energy assessors.
Pett explained: “There are many energy assessors scrambling around looking for work and opportunities to earn additional money. The proposal sees the assessor as a key member of the advisor’s team who would use the visit to the property for the energy inspection as an opportunity to engage with the seller and obtain information and documents that will help the adviser with delivery.”
Pett said the advantages to these changes include quicker transaction times, reduced abortive sales and greater transparency.
The HIP continues to receive a lot of criticism for stalling the property market, adding extra cost to a transaction and placing an unnecessary burden on sellers and buyers.
The full Paper can be found at http://www.hipreformgroup.com/newyear_reform.pdf.
Comments
John 'Hips stop potential vendors from testing the market'
Good exactly what we want as this tend to over inflate the market. Estate agents have welcomed this as it cost them time and money.
HIPS stop potential vendors from testing the market and thus reduce the numbers of properties for sale. Vendors do not want them, buyers do not want them.
It seems the only people that do are those that make money from them.