Call for ‘exchange ready’ HIPs With the final phase of the roll-out of home information packs (HIPs) now completed, the Association of Home Information Pack Providers (AHIPP) says the challenge now is to improve and add to the pack.
Mike Ockenden, director general of AHIPP, said: ‘We welcome the full roll-out of HIPs in particular because of the help they give to first-time buyers – but this is only the beginning. We are now looking to work with all other industries involved in the home buying and selling process to develop and improve HIPs and their content, so that they can be fully incorporated into the house buying process.’
For HIPs to fully inform potential buyers about properties they are viewing, it is vital that home condition report (HCR) be made a mandatory part of the pack, and that many of the searches that provide information on flooding, ground movement and contamination are included, says Ockendon.
‘By bringing this information back into the pack and certain documents that are required to complete the legal process, HIPs can be made exchange ready. This means that a buyer who has an offer accepted can pass the pack to his or her lawyer, who can rely on the contents and move quickly to exchange of contracts.
‘Exchange-ready HIPs will remove delays from the process and reduce the number of failed transactions – which have been running at over 25 percent, costing consumers £1 million per day. They will also ease the extraordinarily high level of stress associated with buying and selling homes and reduce the cost of the process. Further, they will give aspiring first-time buyers help in owning their first home.’
NAEA amazed at government spin over HIPs The National Association of Estate Agents (NAEA) has voiced its reservations over the contents of the recent update on Home Information Packs (HIPs) from the Department of Communities and Local Government (CLG). Within the document the department states that the government commissioned independent economic research and advice to analyse the impact of HIPs and its interaction with current market conditions.
NAEA raised concerns about aspects of this research which was carried out by Dr Peter Williams of European Economics.
Stewart Lilly, President of NAEA, explained: ‘In particular the main conclusion is that there was no evidence to show that HIPs were affecting transactions or prices and that the market slow-up was due to the economic and financial situation. However, it was accepted that HIPs must have had some effect, although it is really too early to be certain. This begs the question of how a decision to proceed can therefore be made.
‘It is disappointing that Dr Williams did not talk to the stakeholders nor take into account or discuss our recent members’ survey. In my opinion his research seriously underestimates the impact of people “testing the water” and it is incorrect to consider them time-wasters as we all know that this is clearly not the case.
‘I do not believe that a correct analysis of stock levels has taken place and there appears to be no attempt made to check listings of three- or more bedroom properties against smaller ones which would, in our opinion, have shown a clear differentiation and proved that HIPs are affecting supply.
‘It is probably true that transactions and prices have not been affected. It is far too early for this to happen and will occur as a result of a reduction in instructions.
‘My own conclusion is that the Government has proceeded on the basis of a report that did not fully look into all the market conditions and in any case accepts that it is too early to come to many firm conclusions.’