HIPS are axed for Home Sellers!
Following days of speculation the new Government has announced that as of Friday 21st May 2010, those selling their home will no longer need a Home Information Pack (HIP).
Many have welcomed the news with open arms as it now means that homeowners will be able to market their property without having to pay hundreds of pounds upfront!
Previously, it had been a legal requirement since August 2007, that a property could not be marketed without a HIP. This was considered by most as wholly unnecessary, due to the lack of useful additional information the HIP provided potential buyers and was also criticised due to the expense it caused home sellers, being an average cost of £350.00 plus VAT.
Local Solicitor Butcher & Barlow said the change should hopefully rapidly improve property transactions. “HIPs only served to increase the cost and hassle of selling homes for many and overall were stifling the housing market. Now that Sellers only need to commission an Energy Performance Certificate (EPC), the process of selling and buying homes will be simpler and more efficient for everyone. It will hopefully also encourage Sellers back into the market and help improve the economy,” said Le-Ann Walker, Property Partner.
Under EU Law, it will still be necessary for Sellers to provide an EPC when marketing their property, in order to demonstrate to potential buyers a property's energy efficiency (or lack thereof) and also to provide advice and recommendations in order to improve the energy efficiency of a property. These certificates, however, come at a much more reasonable cost of around £40-£80.00 and are valid for a period of 10 years. Therefore as long as a Seller already has an EPC or can provide evidence to their estate agent that one is being commissioned, their property can be marketed immediately.
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