HIPs rolled out to all homes from December

The controversial Home Information Packs that are currently required for homes of three bedrooms or more that are being marketed for sale in England and Wales will not be rolled out to all other properties, according to reports.

When Home Information Packs or HIPs were brought in earlier this year they were applied to homes of four bedrooms or more. This was then switched to homes of three bedrooms or more several months ago. And now, according to the report, the government has announced that HIPs will be required for all properties being marketed for sale in England and Wales.

The HIPs will come into force for all properties going up for sale from December 14th, which means that any residential property in England or Wales that goes up for sale from this date will need to have a Home Information Pack. However, various statistics have revealed that HIPs may not be having the impact that the government had hoped, and for the first time since they were introduced the government has admitted that these packs may have adversely affected the housing market.

According to a report released by the Housing Minister Yvette Cooper HIPs had impacted on people putting their properties up for sale, causing delays in people deciding to sell their homes. Another report from Europe Economics showed that HIPs had not sped up home purchase transactions by providing more required information to buyers, which is something that ministers had claimed that HIPs would do.

A statement following this study read: ‘Hips may have had an additional modest-but-material effect on listings activity but no discernable impact on transactions, mortgages or prices.’ Surveyors now state that the introduction of HIPs for all properties may results in a drop in the number of starter homes coming onto the market for sale.

Tom Smith
30th November 2007

Tags: information, property, december, sell, packs

Government postpones EPC on new builds

In another change to the roll out of the controversial Home Information Packs, the government has announced a delay in the need for new build properties and conversions to require an EPC or Energy Performance Certificate, which forms part of the HIPs.

This requirement was due to start in January, but has now been postponed until 6th April next year, at which time the home builder will be responsible for the provision of an EPC.

The government has experienced a number of delays in the roll out of HIPs, which at present are only required for properties of three bedrooms or more but are meant to be rolled out to all properties.

An official from Easier2move stated: “We are disappointed the government has chosen to delay the introduction of EPCs on all new build homes until April 6 2008 – putting the launch three months behind schedule.”

She added: “Not only does this disadvantage purchasers of new build properties, who will be missing out on EPCs, but will also be a blow for energy assessors who are already struggling to find work due to the delayed HIP launch and consequent phased roll-out – this further delay will therefore be a great disappointment to them.”

She also said: “We hope the government realises the strain that this delay will be putting on energy assessors and will continue with its stated agenda going forward. In addition, to ensure confidence in the market is maintained, we urge the government to introduce the phased roll-out of HIPs on one and two bed properties as a matter of urgency.”

Tom Smith
14th November 2007

Tags: home, performance, certificate, epc, energy, packs, information

Estate agents claim HIPs affecting the market

According to many estate agents the controversial Home Information Packs, of HIPs, are having an adverse effect on the housing market, with fewer homeowners with larger properties now putting their homes up for sale.

According to the National Association of Estate Agents there are fewer larger properties on the market now than is normally expected at this time of the year. Many estate agents put this down to consumer reluctance to deal with Home Information Packs, which have been at the centre of controversy since they were introduced.

HIPs are now required for all homes being sold that have three or more bedrooms. Eventually HIPs will be rolled out to all sizes of properties that are being sold, and there are concerns that this could affect the market further. According the government officials the Home Information Packs are of benefit to consumers. However, many industry professionals disagree and state that the packs are harming the housing market and putting many homeowners off selling.

The Chief Executive of the National Association of Estate Agents stated: “Clearly everyone accepts that there are a number of financial and economic factors that have caused the market to take a breather after seven hectic years. However, these figures show that there is an anomaly between instructions on properties where a Hip is required and where one is not.”

He also said: “With sales slowing and normally a traditional autumn bulge in instructions, it would be normal to expect stock levels to be significantly higher. This once again appears to show the adverse effect Hips are having on the market, the lives of consumers and indeed the overall economy.”

Alan Wright
13th November 2007

Tags: houses, costs, homeowners, home, real, packs, information, problems

Three bed homes to be covered by HIPs

The controversial Home Information Packs, also known simply as HIPs, have so far been used on properties that are being sold and have four or more bedrooms.

These HIPs were designed to cover all homes being sold, but lack of training of relevant assessors meant that there were not enough resources to cover this, and as a result only houses with four or more bedrooms were covered when the scheme was finally launched earlier this year. However, the government promised that as further staff members were trained the scheme would be rolled out to cover all properties.

It seems as though the government is quickly ensuring that it keeps its word, after an earlier announcement this week that HIPs would now also cover three bedroom homes. The plan is to continue rolling out the scheme to smaller properties as time goes on a more staff are trained, until eventually all homes will be covered with the Home Information Packs. These packs will provide a range of details such as energy information, property deeds, and more.

The HIPs have been at the centre of controversy for some months, with many experts stating that they will have a negative impact on the housing market, and that they will prove too costly for sellers. Although these packs provide information for the buyer of a property, and can save them time and money, they will cost the seller, and could prove troublesome for sellers according to some professionals.

According to the Communities Minister Baroness Andrews: ‘We are now ready to start rolling out Hips and EPCs to the next part of the market as promised, and improve the home buying and selling process which currently is not working for consumers or the environment.’

Tom Smith
1st October 2007

Tags: home, hips, packs, government, property, information

HIPs In Place For Three Bedrooms

Estate agents are warning that the new Home Information Packs (HIPs) are going to cause a shortage of larger properties on the market. One agency reported that the number of large homes on offer for sale is down by 40% over the last 12 months, and experts in the industry are blaming the packs for the problems. Each pack costs around £500, and they have been compulsory for homes with four bedrooms and more since 1 August.

The Government says that the packs will shorten the time of the buying process, but agents claim that they are actually putting off sellers and pushing up prices as they try to cover costs. Each pack must include an energy performance certificate and standard searches.

Estate agency Chancellors said that it had seen a fall of 42% in the number of large homes being brought to market since 1 August when compared directly with the same period in 2006.

Many sellers are unhappy with the process. Some say that it verges on interrogation, with questions on construction dates, central heating, loft insulation and the use of low-energy light bulbs, and multiple photographs throughout the property. Some people have seen the process through to sale, but many more have not. The Royal Institution of Chartered Surveyors (RICS) said that 53% of its members reported a drop in the number of four bedroom homes put on the market since 1 August, compared with the same period last year – worse even than the Chancellors figure. This fall has not been in line with expectations, despite rising interest rates, stock market turmoil and the credit squeeze, and HIPs are being blamed.

Now, since Monday 10 September, HIPs are required for homes with three bedrooms, despite warnings from those within the housing market.

Jeremy Leaf, housing spokesman for RICS, is unhappy with the way the government has handled the implementation. He said: “I have never known legislation so badly introduced. Homeowners clearly have no faith in the packs or the policy, which have only brought more bureaucracy and mass uncertainty to an already paralysed market. Before they are heaped on the rest of homeowners, we need to see some evidence-based justification that this policy benefits consumers. At the moment it doesn’t exist.”

Nick Salmon, an estate agent and founder of the campaign group Splinta (Seller’s Pack Law is not the Answer), said: “I cannot think of any [benefits consumers have seen from HIPs]. There is a great deal of anger among homeowners who do not see the point of these packs and consider them another stealth tax. HIPs have simply heaped more expense at the wrong end of the transaction, and sellers have nothing but contempt for the new law.” The Government stands to boost its coffers by the VAT applied to the Packs.

There are still loopholes in the law. Sellers can avoid a HIP by 1) converting a bedroom to a study, 2) cancelling a pack after it has been ordered, as it only need to be ordered, not actually purchased, 3) pay the £200 fine for not having a HIP – much cheaper than the £500 a HIP costs. In fact, getting caught is unlikely as trading standards officials admit they don’t have the resources to enforce the packs.

Mr Salmon believes the government is running the risk of drying up the housing market by introducing HIPs for three bedroom properties. Gordon Brown, he claimed, may rue the day he passed up the chance to kill of HIPs.

Tom Smith
29th September 2007

Tags: home, fine, bedroom, government, surveyors, house, hips

Govt still committed to Hips

The government remains committed to the introduction of Home Information Packs (Hips) in August.

Secretary of state for communities and local government Ruth Kelly has reassured homeowners that the government has no plans to back out at this late stage.

Hips will be mandatory in the sale of any house with four or more bedrooms from August 1st, with a view to a wider roll-out in the future.

Some concern had been raised that Hips would be completely scrapped following a humiliating government u-turn over whether they should be introduced to all home sales.

It was eventually announced that Hips would only apply to homes with four or more bedrooms but Ms Kelly has now offered some more details on how the packs will be phased into the entire property market.

She outlined how many energy assessors will be needed for the phased introduction and homeowners are being offered financial incentives to get a Hip before the August 1st deadline.

The reassurances from Ms Kelly have been welcomed by the Association of Home Information Pack Providers (Ahipp).

“Ruth Kelly has today provided much needed clarity for consumers, the Hip industry and energy assessors and she has reaffirmed the government’s commitment to the future of Hips,” said Ahipp director general Mike Ockenden.

“We now call upon all industries that touch the home buying and selling process to get behind the implementation of Hips, in order to deliver the benefits to home sellers and buyers.”

Tags: Home Information Pack, future, packs, phased introduction, market, energy, law, hips

Disappointment over Hips back down

The decision to delay the introduction of Home Information Packs (Hips) into the home-selling process has left a number of industry figures disappointed.

Hips were due to be introduced on June 1st, with the aim of reducing costs for buyers and improving the green credentials of homes in the UK.

However, the government has now announced that the start date for Hips will be put back to August 1st, initially with only homes with four or more bedrooms being subject to them.

The announcement has caused anger among those who support Hips and some parties have been warning of negative consequences.

“This latest decision is at the cost of the consumer and the environment,” said Mike Ockenden, director general of the Association of Home Information Pack Providers (Ahipp).

He went on to blame the government back down on a recent legal challenge which as launched by the Royal Institute of Chartered Surveyors (Rics).

“It appears to have been Rics, through their call for a judicial review, which has ultimately derailed this vital house buying and selling reform, so soon before its planned implementation,” he continued.

“This is a serious let down and it is both the consumer and the environment which will now suffer as a result of these latest changes. Consumers will have to endure the existing, broken house buying and selling process for at least a further two months, costing them time, money and unnecessary stress.”

AA Legal Services has also expressed its disappointment with the decision, claiming that there will be “many losers” as a result, including mortgage holders.

Tags: introduction, Providers, time money, Law in the United Kingdom, house, packs, process, disappointment