Burnetts Gears Up for HIPS

Carlisle solicitors Burnetts is holding a series of a briefings about the controversial Home Information Packs (HIPs) which are being introduced on 1st June 2007.

The briefings aim to help estate agents, banks, building societies, surveyors and others prepare for the arrival of HIPs and to discuss how the scheme will work on a local level. The next events will be held at Burnetts on 28th March at 1pm and 5pm.

The government’s view is that if buyers had all the information they needed at the outset, fewer sales would fall through. According to the government’s Home Information Pack website, one in four transactions collapses before contracts are exchanged. The HIP will include documents like Local Authority searches, evidence of ownership and an Energy Performance Certificate.

This may be good news for buyers, but the HIP has not been universally welcomed. Many in the industry see the HIP as added burden for sellers who will have to pay around £400 to have their HIP prepared. There is also scepticism about how valuable the HIP will really be to buyers, especially since the government scrapped the compulsory inclusion of the Home Condition Report last summer. The government’s immediate problem is that, come 1st June, there will be too few inspectors qualified to carry out the energy reviews.

Mike Wood, Head of Conveyancing at Burnetts also has concerns about the impact such a major scheme could have on the housing market. He said, “My view is that the whole housing market will be slowed by the uncertainty HIPs will bring. Nonetheless, whether or not we agree with the principle, we all have to be able to guide our clients smoothly through the new system - we must be prepared for the introduction of HIPs in three months time.

The aim of our briefings is to bring local players together to ensure we are clear about our new roles in the home buying process. We have already held one meeting and found the feedback to our proposals very positive although most people shared our frustration with the shortcomings of the new system.”

The first briefing for estate agents was held on 28th February. The next HIPs briefing takes place on March 28th at 1pm and 5pm with further events following in the lead up to the 1st June launch. Businesses who would like to attend these events should contact Angela Huck on 01228 552222 or or by email

End

2nd March, 2007

For media information contact Angela Huck on 01228 552222 or by email

Notes to editor:

1. What industry bodies are saying:

National Association of Estate Agents

With only three months to go until the proposed home information pack (HIPs) legislation comes into effect on the 1st June 2007, the National Association of Estate Agents (NAEA) has expressed its concern that the plans will be rushed and incomplete.

Peter Bolton King, Chief Executive at the NAEA, comments: “There are still so many question marks hanging over HIPs that one has to wonder why the government is still maintaining a 1st June launch date.”

The Royal Institute of Chartered Surveyors

RICS has called for the postponement of mandatory HIPS. RICS spokesman Jeremy Leaf said: "Home buying reform - yes! But, as these implementation proposals are potentially detrimental to the market and in the interest of consumers and the wider economy, we have little choice but to call for a postponement. 

Council of Mortgage Lenders

CML head of policy Jackie Bennett commented: "No-one would dispute that the house-buying process is slow in the UK and could usefully be speeded up to benefit consumers. But there is no clear evidence that HIPs will solve the problems….

…This close to the implementation date, there are still far too many unknowns about the potential market impacts. We call on the government to postpone the introduction of HIPs until they have been properly trialled and reviewed."

Association of Home Information Pack Providers

Mike Ockenden, Director General, AHIPP said: “HIPs are being introduced to help improve the house buying and selling process for all involved – bringing more information about a property to the front of the process, allowing buyers to make more informed decisions and reducing the number of sales that fall through. At the end of the day this should greatly reduce the needless stress associated with buying and selling homes in this country”

2. What the Home Information Pack will include:

The mandatory documents are:

* An Energy Performance Certificate 
* An index (i.e. a list of the contents of the Pack)
* A sale statement (summarising terms of sale)
* Evidence of title
* Standard searches (i.e. local authority enquiries and a drainage and water search)
* Where appropriate, commonhold information (including a copy of the commonhold community statement)
* Where appropriate, leasehold information (including a copy of the lease, information on service charges and insurance)
* Where appropriate, a New Homes Warranty
* Where appropriate, a report on a home that is not physically complete

3. Useful websites:

The government’s official Home Information Pack site www.homeinformationpacks.gov.uk

The Royal Institute of Chartered Surveyors
http://www.rics.org/

The National Association of Estate Agents
http://www.naea.co.uk/

Council of Mortgage Lenders
http://www.cml.org.uk/cml/home

For media information contact Angela Huck on 01228 552222 or by email