Home Information Packs

Rick62

I believe that if you put your property on the market by 1st June then you have something like 9 months before you need a HIP. So even if don't want to sell till later, it would make sense to put it on the market in may rather than later.

Catmeister

Well I rang up the HIP people who gave me another number. Thos was for an adult education centre who (naturally) said they didn't have a clue! When I rang back, HIP insisted they take (education centre) all the HIP calls so very confusing! Anyway, emailed and they confirmed that as long as you're on the market before June 1st, you have until March 2008 so thanks Rick62 you were dead right! (Hardly surprising from your sig!)

If anyone wants to see forthemselves, the report is on this link. (It's point 60 - later than 59 so supersedes.)

This could of course have a very negative effect on chains, with 'vendors' joining the market before they are actually ready to move, just so they don't have to pay for the HIP. :mad:

courtjester

There is clearly going to be a lot of confusion surrounding the introduction of HIPS, as most people have so far ignored the available information because "it doesn't apply now".

1. From June 07 every home placed on the market will require a HIP meeting government requirements.

2. For property already on the market at 1 June 2007, they have until November 2007 to sell before a HIP will be legally required to be in place - hence a grace period of about 4 months, not 9.

3. A home condition survey may be included in the HIP on a voluntary basis - it remains to be seen, but pressure from buyers may force sellers to pay out for the 'extra' survey as a marketing incentive if other property in their area have surveys available and are therefore more attractive to buyers.

4. Because sellers think that they will liable to pay anything from £400-£700to purchase a pack after June 07 (the amount is still in question and will depend on the supplier or the agent being used), it is inevitable that this WILL result in a rush to get homes on the market in the run up to June before the deadline to avoid the cost.

5. It will be illegal to put a home on the market without a pack ALREADY in place after June 07, although how this is likely to be enforced is anybody's guess. The penalty proposed is something like £100-£200 per day until the pack is available...

6. It will be possible to have a HIP 'funded' free, the cost being paid on completion, like solicitors fees. Certainly private sellers will have that option, but people using an agent may have to pay up front depending on the way individual agents want to handle the process.

7. Even though a survey is not included, there are still benefits to both sides in terms of speeding up the process and providing more information about the legal documentation at an earlier stage, so helping to cut down on the time to complete conveyancing once an offer is accepted. As a potential marketing incentive, it will certainly be a disadvantage NOT to have a HIP or survey available to buyers if other comparable property in your area does. HIPS are available now giving that potential advantage.

8. Despite claims to the contrary, it will not improve some of the real negatives about buying and selling such as uncertainty and gazumping and will not change the laws, so offers will still not be binding until contracts are exchanged.

Catmeister

Courtjester where are you getting your information on dates? As I posted, I have gone direct to the hip and they have clearly stated that the grace period is until March 08. If you follow my link it would appear initially the grace period was only until October, but this was extended as 'shareholders' didn't think this was long enough for drawn out sales involving long chains.

Maybe you can cite your source?

(I think it will all change nearer the date anyway grrr)

courtjester

Catmeister - my information is sourced from industry contacts and relates to the *current* regulations.

You can obtain the full current regulations from the government communities site (same website where the update you quoted is published):

Home Information Pack Regulations 2006 (Procedural Guidance)
http://www.communities.gov.uk/index.asp?id=1500716

Currently, the grace period for property already on the market ends 31/10/07.

The document and link you quoted is only a CONSULTATION document, it is not yet law but is an analysis of early findings from the HIPS dry-run trial which has being going on in six areas since November.

In the consultation document, it is *recommended* that the grace period be extended to March 08 - but that is not yet decided.

As you rightly say, the government are well known for not thinking things through and doubtless, the goalposts will continue to move right up until June :rolleyes:

Catmeister

Thanks CJ - I did actually ask the gov communities direct as I noticed it was a consultation doc, and they stated that the grace period was March 08 by email, but as we both agree, who really knows?!

courtjester

If you read (or scroll) right to the end of the consultation update, the next relevant dates are:

29 March - final HIPS amendments announced
19 April - HIPS regulations come into force

I can't wait... :cool:

Generali

Presumably then, if you're thinking about selling this year, you just stick a free ad on Gumtree or some such and your house has then been "on the market" and you can prove it.

Using the supply and demand argument, they could actually depress prices as people rush to get their property on the market before they have to pay for these infernal things.

Why can't we just use the Scottish system? Seems much better, from afar at least.

TJ27

That's sort of what I was wondering Generali. What does "on the market" mean.

I know several people who have actually sold their houses simply by putting a piece of paper in their front window reading "For Sale. Tel: **********". So if you do that, is your house on the market?

Generali

I would say that if you think to yourself, 'I'd take an offer above £xxx' whilst in the shower one morning it is. If you put it in the local paper or on a free ads website then you can prove it.