HIPs Are Suspended
On 20 May it was announced that the Government proposes to bring in legislation to remove the requirement for a Home Information Pack (HIP) before putting a house on the market. From 21 May the need for a pack has been suspended, and houses can be marketed immediately.
Legislations introduced in 2007 made it a requirement that a HIP was needed before a property could be marketed. To now remove the necessity for a HIP will require a change in the law and, as this is likely to take some time, the suspension is seen as fulfilling the manifesto pledges of both coalition partners to remove HIPs from the process.
The cost of a HIP varied between about £185 and £400 depending on who was commissioned to prepare it, with local solicitors Lanyon Bowdler being proud to be one of those who were in a position to prepare them at the lower end of the cost scale. The cost of the searches (a cost that was frequently wasted as they only had a limited shelf-life), was borne by the Seller and will now have to be paid for by Buyers. In some circumstances this change may lead to a delay in getting to exchange of contracts, but in most cases it will not be the case. One of the benefits HIPs brought is that Local Authorities now have better systems in place for producing the results of searches quicker and more efficiently.
The Energy Performance Certificate will still be needed, as this is an EU requirement, but this has to be available within 28 days of the property being marketed. Lanyon Bowdler will continue to offer access to cost effective Energy Performance Certificates for the benefit of clients and estate agents.
Lanyon Bowdler has dedicated residential conveyancers at its offices in Shrewsbury, Telford, Oswestry and Ludlow.