On 6^th April 2009 changes were introduced for when you are selling your property regarding Home Information Packs (HIPS).

Prior to that date it was acceptable to market your property provided a HIP had been instructed. However, this exemption has now been removed and it is unlawful to market a property unless the HIP is actually available.

The housing market is currently struggling and there has been much criticism that the new rules are deterring potential vendors from putting their property on the market.  HIPS cost circa £300. This cost therefore has to be incurred by a potential vendor just to “test the water” and see how much demand there may be for their property.

The Telegraph has recently quoted that one in 10 estate agents thinks the number of people selling their home would be double its current level if the need for the packs was withdrawn. In addition they state a further fifth of agents thought the supply of property would increase by between 20 to 25 per cent if sellers no longer needed to have a HIP in place prior to marketing their property.

The housing market has recently shown some signs of improvement. However, this can only continue if more properties for sale become available on the market to meet the demand.

In my view the government should very quickly consider scrapping the need for HIPs at least as a temporary measure until the market has recovered. The property market has potentially shown some signs of improvement. The government should be doing all it can to build on this.

Let me know your thoughts.

The following 3 changes are being introduced with effect from today, 6^th April 2009 in relation to selling your property:

• Previously a property could be marketed provided a HIP had been instructed. This temporary first day marketing exemption for a HIP is now being removed and from today it will be unlawful to market a property unless the HIP is actually available.
• The HIP must also now contain a Property Information Questionnaire, which must be completed by the seller and included in the pack before the marketing of the property can begin. The intention is that the PIQ will provide the prospective buyer with a helpful checklist as they walk around the property.  The PIQ must be completed by the vendor. If the selling agent assists with completion the agent will be liable under the Property Misdescriptions Act 1991.
• An insurance policy designed to cover any missing data in personal searches will no longer be allowed.  From today all searches must be complete.

The Financial Times has reported that Estate agents are calling for home sellers’ packs (HIPs) to be suspended, since they are deemed by many to be an expensive waste of time.

The price tag is typically £300 and this is incurred by the vendor before they know there is a willing purchaser. In the current environment where house prices have been falling for the past year, this cost has therefore brought additional problems to sellers. Estate agents have called for HIPs to be suspended for at least a year in order  to give the housing market a period of time to recover.

The FT has reported that The National Audit Office found that 80 per cent of buyers do not see a HIP before making an offer on a house, and most said the HIP had no effect on their decision.

The Conservative party has said it is committed to abolishing Hips.

Home Information Packs (HIPS) are to be enlarged next April to include further details such as a property’s risk of flooding, structural damage and parking arrangements.

Sellers will also lose the current 28 day period of grace whereby they are currently permitted to market their homes for sale provided they have commissioned a HIP. Following the introduction of the new rules the HIP must be made available at the point when the property is first marketed.

In the current environment when property sales have plummeted there is a concern that the introduction of the new regulations will cause further problems