Life after Home Information Packs |
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24th May 2010
So finally after days of procrastination, the Government announced the end of HIPs effective midnight Thursday, 20th May.
On Friday 21st May, we were instructed on 11 properties and had 14 offers submitted. Since then the valuations have been flooding in. Co-incidence? I don't think so.
The reality was that HIPs did not work on any level. They were costly and many agents were getting 'referral fees' from the HIPs providers, often in excess of £100. Make no mistake, this was a fee which the seller paid for and, which contrary to the 1979 Estate Agents Act, should have been disclosed to the seller.
The HIP was a watered down compromise which suited no-one other than those in the industry which grew from the back of this compulsory red tape. The content was extensive, but many found the searches were poor in quality. Further, who would rely on a search which could be up to 6 months out of date?
A copy of the lease was included, but really, other than a lawyer, who is qualified to read it? Fixture and Fittings list was also required and indeed useful. But of the negotiating process determines what a Vendor would leave and as such was subject to change. Surprisingly, whilst this was document was required to be included, it could be left blank!!
One large leading chain claimed HIPs sped up the conveyancing process by 5 working days. We argue it could take that long to get a HIP before you put a property on the market, so not much of a saving.
The suspension of HIPs has been like a weight lifting from our shoulders. Not because of the bureaucracy but because it was an unfair and unnecessary burden. Imagine you had lost your job and were struggling with the mortgage. Many could simply not afford a HIP unless they accepted the expensive Buy Now, Pay when you Sell options.
So far, post apocalypt-hip agency seems much brighter and would be sellers are returning to the market giving buyers more choice which in turn will help in stabilising house prices and returning confidence.
