New HIPs regulations

HIPs and property stuff regularly comes up on IB so as a public information service I thought I'd post about the new HIP regs, published today.

A summary of the changes:

·The major change is that first day marketing will end on 5 April 2009. Estate agents will still have the 28 days provision for certain information (e.g. searches) that take longer to obtain. This means that you won't be able to market a property as soon as the HIP is ordered (as happens now - agents routinely call me, I talk to client in estate agent's office, they select what they want, I order immediately, e-mail agent to say it's ordered, and property goes on market). I just can't believe that the Government has chosen now to intrioduce this change.
·From 6 April 2009 HIPs must include a Property Information Questionnaire which is to be completed by the seller. This will include additional leasehold information where appropriate. This means a shedload of delay because often sellers have no ide how to answer the questions and getting leasehold info is often v v difficult cos the seller has to contact the ground landlord.
·From 1 January 2009 the present ‘temporary’ leasehold information provision will be made permanent, ie. as long as there is a copy of the Lease in the HIP then the property can be marketed.

·No drop dead date is imposed after which all properties on the market require a HIP. Well there's a relief.

Transitional insurance cover for missing search information will end on 5 April 2009 - so the search needs to be complete - can be time-consuming...The Minister also reminded everyone that searches remain a compulsory component of HIPs and a working group has been set up to consider how they can be made simpler and more easy to use.



Yet another working group is being set up to explore options for making sure that consumers have information about the condition of the home. The aim is “to develop market-led models that can be delivered by existing practitioners, including Home Inspectors”. Don't hold your breath....

Further, the OFT have announced that they will be conducting a comprehensive study of home buying and selling. This will concentrate on competition on price and quality between service providers. The prospects for new entry by, in particular, internet property retailers and the extent to which consumer interests are protected by the existing regulatory framework, will be examined. The study may also cover the relationships between estate agents, and mortgage brokers, surveyors, solicitors and other professional advisors. Yawn. Yet more reviews. Haven't they got enough info already?

Overall opinion - more bueaucracy and red tape that will make it more difficult to sell a house - as if it isn't difficult enough already

[embee]

.....and they tried to sell us the idea that HIPs would actually speed up the sale process, yeah right.

"Further, the OFT have announced that they will be conducting a comprehensive study of home buying and selling."

Well that isn't going to take long is it? Basically there isn't any at the moment, nor for the forseeable future.

Those characters really wizz me off, I mean really. The whole business has become so complex and involved that the ordinary punter just has no clue about what's going on, crazy.

PS - have they sorted out the issue about who actually owns the HIP? As in if you want to move agent for selling they wouldn't/couldn't transfer the HIP so you had to pay again, or is that still the case anyway due to legalities?

Originally Posted by embee

.....and they tried to sell us the idea that HIPs would actually speed up the sale process, yeah right.

"Further, the OFT have announced that they will be conducting a comprehensive study of home buying and selling."

Well that isn't going to take long is it? Basically there isn't any at the moment, nor for the forseeable future.

We have a fair bit of resi on at the moment, Sarah is busy and so too is Julie. People who are selling have taken a caning on price though.

Originally Posted by embee

Those characters really wizz me off, I mean really. The whole business has become so complex and involved that the ordinary punter just has no clue about what's going on, crazy.

PS - have they sorted out the issue about who actually owns the HIP? As in if you want to move agent for selling they wouldn't/couldn't transfer the HIP so you had to pay again, or is that still the case anyway due to legalities?

My advice is always that client pays so client owns.

HOWEVER nearly all my HIPS are on our 'No Sale No Fee' product and it used to be the case that a change of agent triggered a payment. So people didn't transfer. However I think that the newer version doesn't have this so people can change if they want.

[dizzyblonde]

whatever happened to 'I simply want to sell my house' ?
I'm dreading when I have to put mine up, it was bad enough last time when it was less complicated


It won't be long before it will be so complicated, that people will end up staying in the one their in...forever...or is that secretly what they are trying to do

Buuuut. What would all the civil servants do if we didn't keep inventing pointless paperwork?

If I was in charge; everyone would tell their houses on Ebay