We put up a post here on 2 March reporting the government’s confirmation that Home Information Packs would become compulsory from 1 June. That confirmation was given in response to pressure from all sides – the Law Society, the RICS and representatives from all sides of the house-selling industry – to defer, if not to scrap, the whole HIPs implementation.
It was a last chance for the government to surrender gracefully. Now they have had to do so in an undignified scramble, as even Yvette Cooper, the Housing Minister, was forced to recognise that there would not be enough inspectors qualifed by 1 June. Not that it was Ms Cooper who carried the can – the unfortunate Ruth Kelly, who is said to have expressed strong reservations about HIPs when she took up her post as Secretary of State for Communities and Local Government in May 2006, was the fall guy when the announcement had to be made.
HIPs are not now compulsory until 1 August, and then only for homes with four or more bedrooms. Expect a rash of houses on the market with three bedrooms and a study.
Rising interest rates and other factors have already introduced considerable uncertainty into the housing market. Our advice to clients is to ignore the whole thing – to comply, of course, as and when the regulations apply, but not to make decisions about moving house based on the government’s conduct over this issue. As with Stamp Duty for buyers, HIPs are just another cost to factor in to the decision. Most of the required documentation – apart from the Energy Performance Certificate – was always required in some form anyway.
There is a list of the required documents in our web site page on HIPS as well as various articles on buying and selling properties which can be found from our property articles index.
Please do not hesitate to contact Felix Appelbe on 020 7242 7000 if you want to discuss any aspect of buying or selling property.
