Home Information Packs
On the 1st June 2007 the government backed HIPs scheme begins. What
is HIPs you might ask. Well HIPs stands for Home Information Packs.
The Home Information Packs will be created by Home Inspectors on behave
of a property seller. Yes that's right, a property seller.
Traditionally the onus has been on the buyer of a property to get
a comprehensive survey carried out by a RICs qualified surveyor. In
Currently, this may led to surveyor finding building or structural
complications. Consequently, this may result in a number of scenarios:
1. A pullout from the buyer
2. A reduction in the price offered on the property
3. Tradesmen being called in to carry out work on the property
All in all this leads to a protracted buying and selling process.
From 1st June 2007 the onus will be on the seller to arrange a home
inspection by a qualified Home Inspector before the property goes
on the market. This means that major work and repairs will be completed
before a property reaches the market. It also means the property will
go on the market at a price that is more or less representative of
the property in good order.
Perhaps crucially the Home Inspection Pack for a given property will
be in the public domain. This means that estate agents will hold HIPs
reports on properties they are selling. It also means that a prospective
buyer can review and access the condition of a property before viewing,
simply by reading the HIPs report in the estate agent's office.
Opinions about the benefits of the Home Inspection Pack reports are
mixed. Well-known TV property experts Kirstie Allsopp and Phil Spencer
are anti HIPs. They argue that anybody will be able to ask to see
a property's HIP report, irrespective of whether they actually wish
to buy the property. They also argue that 30 per cent of sellers will
be deterred from selling their house because of the cost of the average
Home Information Pack. "It could ruin the property market and
will fail to significantly improve the home buying process,"
However, undeterred HIPs supporters have argued consistently that
the market will benefit from increased transparency after June 2007,
with fewer transactions collapsing as a result of misunderstandings
or building complications. With the average Home Information Pack
expected to cost around £635 but considerably higher in cities,
however, it is likely that many more people will look to sell property
privately online next year as a means of significantly reducing the
fees involved in the transaction.