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What's HIP

Richard Clowes
27/02/2006 Richard Clowes BSc (Est Man) FNAEA Partner Richard runs the sales and letting department at Market Harborough and has a wide range of experience in the selling and letting of rural and village property.


HouseHome information packs (HIPs) are at present a topical subject that is regularly covered in newspapers, on the radio and on the television. Fisher German Partner, Richard Clowes explains what they are:

The basic facts are:

  • All home owners will require a HIP before putting their house up for sale as of the 1st June 2007
  • The pack will not contain a valuation, but will contain (among other things):

    a. A draft contract
    b. Evidence of title
    c. Replies to standard preliminary enquiries
        provided by the vendor.
    d. Copies of any planning consents
    e. Any warranties or guarantees.
    f. Replies to local searches
    g. A Home Condition Report including an Energy
        Efficiency Assessment.

The Pros and Cons.
 
The Pros:

  1. The HIP will bring together at the start, helpful information to help potential purchasers make a well-informed offer. 
  2. Greatly reduce the chance of the terms being renegotiated and therefore proceed with the purchase more easily.
  3. Shorten the period between offer, acceptance and exchange of contracts, thereby preventing gazumping or gazundering.

The Cons:

  1. The expense of HIPs may discourage potential sellers from putting their house on the market, as will poor home conditions reports.
  2. Due to the above and the difficulty in marketing properties immediately there could be a shortage of properties on the marketing therefore pushing prices up.

Fisher German are supportive of the new legislation as it will make house buying more transparent. Partner Richar Clowes comments, "It is very similar to what we have been producing for years, for properties that we are taking to auction. We are already looking at the most cost effective and efficient way of producing HIPs on behalf of our clients."

We will be covering in more detail what is actually in the HIP particularly the Home Condition Report in the next issue of our Rural Focus Newsletter.

For further information on this issue please contact Richard Clowes.

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