News

May 29

No More HIPs: Good News for Home Sellers

Home Information Packs were introduced in 2007 with the aim of speeding up the process of selling a house by presenting buyers with much of the conveyancing information right from the start such as local searches, property information and Title Deeds.

The suspension of the packs by the new coalition Government as of 21 May 2010 aims to give the housing market a much needed boost by easing the burden of costs for sellers and encouraging them to test the water of the housing market, without having to stump up for a HIP which would have cost anything in the region of £350.

“Home Sellers will be able to get on with Marketing their Home”

Housing Minister Grant Shapps said: “By suspending home information packs, it means that home sellers will be able to get on with marketing their home without having to shell out hundreds of pounds upfront,” and he added: “We are committed to greener housing so from now on all that will be required will be a simple energy performance certificate.”

An energy performance certificate (EPC) costs in the region of £60 and sellers are responsible for presenting them within 28 days of putting their property on the market.

“Few have paid attention to these pointless packs”

Whilst the onus has now switched to buyers to pay out for searches costing around £200, and whilst this is looked on by some as adding to the burden of costs for first time buyers, it has been challenged by the National Association of Estate Agents who said, “It will be greeted enthusiastically by both the housing market and house buyers, few of whom have paid much attention to these pointless packs.”

Geoff Charles of Bower Mortgage Company agrees that HIPs were deterring sellers from putting their properties on the market due to a fear of a no sale costing them dearly. He said, “The aim of HIPs was to speed up the selling process, however, instead they stunted the market because homeowners were refraining from putting their properties on the market.”

 “Sellers can see how the land lies without having to pay high upfront costs”

 “It is a shame the packs did not perform as intended, however I believe their removal should give the property market a boost by encouraging sellers to see how the land lies without having to pay high upfront costs,” summarised Geoff.

 Your home may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.

 Bower Mortgage Company: FSA regulated UK-wide mortgage advice from friendly, qualified, experienced mortgage planning specialists. Quality, face to face advice and a strong focus on building long term customer relationships. For money saving mortgage and mortgage protection advice, contact Bower on 0800 411 8668; e-mail info@bowermortgagecompany.co.uk or visit http://www.bowermortgagecompany.co.uk.