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The Home Information Pack debate
Opponents, including Splinta (Sellers Pack Law Is Not The Answer), say HIPS will be a waste of time and money, while the Association of HIP Providers (AHIPP) believes otherwise.
Paul Broadhead,
Currently, in 28% of cases, homebuyers find a house, put in an offer, start the legal work and then further down the line something causes it all to fall through. The next potential buyer who comes along will then go through the same process, spending the same money, before the same issues arise again. HIPS will present most of this information earlier, improving the efficiency of the process and reducing both stress and the likelihood of gazumping. Making the home condition report (HCR) voluntary is a mistake, but one we hope to see rectified in the future when consumers demand it. Without the HCR, the packs will cost between £300 and £400 each, but this is money that is already being spent in the existing process, so it's not an additional cost, but a redistribution. First-time buyers underpin the housing market and HIPS will prove especially beneficial for this vulnerable buying group who are currently forced to pay for the valuations and searches on a property, even if the deal falls through. HIPS will improve the homebuying and selling process for all involved. Nick Salmon, spokesman, Splinta says: HIPS are supposed to make a difference to the homebuying process, but they will fail to do so. In 1997, Government research identified that the main cause of transactional failure was human nature - a change of heart or a change of circumstance - but the pack doesn't address this. As the HCR is now voluntary we just have the energy performance certificate and the legal element, so it has become more about green issues than about the actual homebuying process. We believe the Government will eventually use tax to penalise homeowners with properties that aren't energy efficient enough. As for the legal side of the packs, the shelf life of the searches is three to six months, and outside that time limit the pack won't be accepted. But, the average time between a house coming onto the market and a buyer being found is around three months. In addition, owners will have to wait for 14 days while the pack is prepared, and that could affect seller behaviour as it creates more time pressure. There are more cost-effective ways of improving the process - and the only people in favour of HIPS are the providers themselves.
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