HIPs extended to 1 & 2 bedroomed properties

chriserenity

In case you havn't heard, all properties sold in England and Wales will need a HIP from 14th December. This is only residential sales in England and Wales. Currently, only properties with 3 or more bedrooms need one.

I havn't seen any estate agent signs urging the public to 'get in to avoid the cost of a HIP' like as when four then three bedroomed properties introduced but I think it won't be long

All rental properties will still need an EPC from October 1st next year btw.

If you're compiling your own HIP make sure you read the requirements properly - smaller properties tend to have a higher % of leaseholds and extra documentation is required for this type.

Any questions, ask me right here.

fimonkey

Wow, the sneaky Government eh (but then would we expect any less?).

Be interesting to keep an eye on ppls opinions on this. have read the the chartered surveyors think this will increase prices even further and make it even harder for FTB's. DO they REALLY think it'll increase prices?

Personally I think it'll do more to slow down the market, making it harder for BTL's to get rid of their non-profit making 1 bed flats (though isn't there a glut of these expected on the marked in April when the CGT rules change)?

I take it if your home is on the market before the 14th you don't need a HIP?.. cool, rightmove is about to become more interesting again then.

As a BTL who wants to sell however, would you market now to avoid the HIP, but hold off completion till after April to avoid CGT? That'd be my plan if I was a greedy landlord mwahh mwahhh mwahhhh

jtownson

Thanks chriserenity,

I am exchanging next week on a new house that wont be complete until january which is when I complete. Will my developer need to provide me with a copy of the HIP or due to exchanging before the deadline will they not provide one?

Thanks

chriserenity

fimonkey wrote: »

I couldn't speak for the chartered surveyors I'm sure. Logically it shouldn't. With all properties needing HIPs from the 14th there would then be no 'double paying' as in now where if you sold your 3 bed and bought a 2 bed you would have to pay for the searches twice. Make sure you know where you are with your HIP provider for when the searches go out of date though!

HIPs are great for 1st time buyers surely - as a non seller you have no searches etc to pay for at all so solicitors fees should be cheaper (I would expect).

I don't know about slowing the market - there are larger economic forces at work than HIPs in the property market as I'm sure the site's resident estate agents will tell you. HIPs may put off the 'toe dippers' as they did for larger properties but as HIPs are valid for a year of re-marketing I can't see how they would put off serious sellers (like if you know you want to sell within a year).

Yes, if your home is on the market before the 14th it won't need a HIP but they'll likely introduce a date when ALL properties marketed without a HIP will need one soon after the new year (they have hinted as much).

Regarding the merits of marketing a property now - ask an intelligent estate agent. I'm NOT an agent but I would think you should base your decision about whether to market your property right before xmas on more than just avoiding a 300 pound HIP?

If you're a greedy landlord you can't avoid HIPs altogether. From 1st October 2008 you'll need to get an EPC but that will last you 10 years and the advice contained therein is IMO well worth the cost, but then I'm a DEA so you would expect me to say that! lol Its my honest opinion though.

chriserenity

jtownson wrote: »

Thanks chriserenity,

I am exchanging next week on a new house that wont be complete until january which is when I complete. Will my developer need to provide me with a copy of the HIP or due to exchanging before the deadline will they not provide one?

Thanks

Right, this is a bit complex. The requirements for newbuild are the same as for second hand homes in terms of whether you need a HIP. You will be entitled to the HIP depending on when they started marketing the plot (individual plots not a 'land acquired' sign) and the number of bedrooms its marketed as having.

1st August 4+ beds introduced
10th September 3 beds introduced

The newbuild HIP won't have an EPC it will have a predicted energy assessment as newbuild EPCs arn't being introduced until early next year (but they'll probably shift the date again). A PEA is just the 'current' information with none of the recommendations or detailed information in it.

So the short answer is it doesn't matter when you're completing as the crucial thing is when they started marketing. You can work out if you they should have one by that date - try asking them outright. Any problems let me know.

twhurl

Thanks Chriser,

I currently have my 3 br house on the market with no HIP . If I switch EA and/or take it off market over xmas and put it back on after will I have to get a HIP ?

meanmachine_2

If this means some FTBer properties come on the market before April good - cos there ain't much around at the moment (as in properties that have no "issues" attached).

I was going to wait til April 08 to look again seriously, but this will mean I keep an eye on things.

That said, I still expect a heap of BTLs to be offloaded from April.

chriserenity

twhurl wrote: »

Thanks Chriser,

I currently have my 3 br house on the market with no HIP . If I switch EA and/or take it off market over xmas and put it back on after will I have to get a HIP ?

Hi twhurl,

The important thing here is if there is a break in marketing or not. If you switch agent seamlessly with no break in marketing then you won't need a HIP until the 'drop dead date' when all properties need a HIP. However, if there is a break in marketing e.g. you take it off then put it back on a couple of weeks later then you will need one at that point.

Hope this is clear.

movilogo

Why it is so that HIP will slow down the market??

Of course, the sellers won't be able to just taste the market, but how does HIP exactly affect the market?

chriserenity

I think what people are on about is that there is now an upfront 'barrier' to toe dipping but before there wasn't.

However, I think this is a false barrier. If someone is really bothered about selling but really didn't want to pay the 300 ish quid upfront then you can get deferred payment, instalment payments (watch those t's and c's boys and girls!). Also, the cost of the HIP will in part be recouped by cheaper solicitors fees at the buyer end. I'd want it cheaper anyway - stands to reason doesn't it. Less solicitor work equals less solicitor fee.

Gillibobs

Right ok, I am a bit confused (tried to read responses to other similar posts but am still not entirely sure)

We currently have our flat on the market which recently went back on after a buyer pulled out. As we're on the market already I gather we don't suddenly need to produce a HIP. But if we still haven't sold a few months down the line is there still a possibility we would need to have one even if we never take it off the market?