Are home information packs a good idea? We share the latest on both sides of the debate.
All properties marketed for sale from 14 December 2007 in England and Wales require a Home Information Pack (HIP).
The controversial packs, which cost between £300 and £500, includes an Energy Performance Certificate, containing advice on how to reduce carbon emissions and fuel bills, evidence of title, sale statements and standard searches.
The government claims that home buyers will see their upfront costs drop and, for the first time, receive A-G green ratings for their properties. Those falling below an F rating will be offered discounted or free help with energy efficiency measures.
While they are aimed at first-time home buyers wishing to speed up the sale process, the National Association of Estate Agents (NAEA) remains opposed to their introduction.
Both (NAEA) president, Stewart Lily and chief executive, Peter Bolton King were astounded by the claims that HIPs are having a positive effect on the market stating that, “Time and time again the industry has advised the government against the packs. We only hope that at some stage its starts listening.”
At the same time, the Royal Institution of Chartered Surveyors (Rics), described the Government’s policy as “flawed” and expects the latest scheme to create further problems for first-time buyers by reducing the supply of smaller properties.
The Rics reckons that the housing market will “grind to a halt” as HIPs have contributed to the vast reduction in properties entering the housing market in the past year. Both the cost of the packs and their lack of content have been scrutinized.
The worry is that it will deter speculative sellers, making life tougher for first-time buyers. But another, less speculated report leads us to believe that house prices will be falling shortly so first-time buyers, perhaps have a little less to worry about than anticipated.
