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It's the HIP way to selling your home
Nov 2 2006
By Chloe Griffiths, The Journal
A new way of buying and selling houses will be trialled in
the North-East from next week. After months of controversy, Chloe Griffiths
finds the region is well-prepared for the change.
A controversial scheme designed to reform the housebuying
process is set to be rolled out across Newcastle next week.
From next summer all householders will be forced to obtain a
Home Information Pack (HIP) if they wish to market their property.
The Government originally aimed to introduce the scheme to
prevent gazumping and avoid money being wasted from sales collapsing at the last
minute.
But the concept has been gradually repackaged as part of the
battle to "save the planet".
With 27% of the country's carbon emissions coming from homes,
ministers hope the new "Energy Performance Certificates" included in HIPs will
encourage more people to tackle their energy usage.
HIPs will be compulsory on all homes sales from June 1, 2007,
but the Department for Communities and Local Government is testing the packs in
six locations across England.
The scheme will be launched in Newcastle on Monday and will
cover postcodes NE1-13, NE 27-36 and NE98.
Homeowners living in these specific areas will be given the
opportunity to sell their homes with HIPs, free of charge, with the success of
the scheme being "independently assessed".
The offer is being run on a first come, first served basis,
while other packs will be available at reduced cost.
The Association of Home Information Pack Providers (AHIPP)
says the locations for the test project offered "a good mix of housing stock and
a fair representation in terms of both supply and demand". The Journal's
Homemaker editor Karen Overbury yesterday said the selection of Newcastle as a
pilot area showed the strength of the region's housing market.
She hailed the trial as a wonderful opportunity to "perhaps
have a chance to change the history of housebuying".
She said: "This is a chance for the North-East industry to
play its part in this major change in the housebuying process.
"Newcastle and the North-East clearly have a very strong
market and this test pilot will give experts in the industry the opportunity to
help lead the way with HIPs."
However, Karen said HIPs failed to address the issue of
people dropping out of deals at the last minute. The Government has also been
criticised for "watering down" the package. Home Condition Reports originally
intended to be compulsory, are now optional.
However, the scheme has been welcomed by director of
Dickinson Dees - who are members of AHIPP - John Cook, who said the test pilot
was a coup for the region.
This sentiment was echoed by property expert Justin Anim, who
says it will be fascinating to view how they work.
The managing director of estate agents Keith Pattinson - who
will be carrying out the first HIPs - says the initiative has become
"politicised" but insists it will work out.
He added: "It will be very interesting for everyone to see
how they work in practice. These pilot projects should really be seen as a dry
run and an opportunity to analyse feedback to see how they work in reality.
"Certainly, I think that without the Home Condition Report,
there is no way that introducing HIPs will have a negative impact on the
market."
To support the test projects, the Government has allocated
£4m to be spent on advertising, business support, independent research and
incentives.
The Department for Communities and Local Government is now
urging companies to participate in the initiative.
What is a Home Information Pack?
A Home Information Pack will ensure buyers have completed all
local authority searches, title deeds are ready and a property is assessed in
terms of energy efficiency by the time it goes on the market.
Every pack will contain:
An Energy Performance Certificate (EPC) which will provide
ratings on the energy efficiency of the home plus advice on how to make further
energy savings.
Searches, including local and drainage searches
Other legal documents, such as evidence of title and New
Homes warranty.
Optional inclusions in the pack are:
A Home Condition Report
Guarantees and warranties
They are expected to range in cost from £250 for a basic HIP,
without the Home Condition Report, and up to £750 with it. This will be related
to the price for energy performance certificates which are still being worked
out. They are expected to take between three to five working days to
complete.
How will buyers be affected?
From a buyer's point of view it ensures the state a property
is in is clear, before they become committed.
Keith Pattinson managing director Justin Anim said: "In many
situations, a buyer can become committed to a property without realising the
full reality of the situation and all sorts of complications can arise.
"A HIP will ensure a buyer is clear about the legal
standpoint and the title before becoming involved." This was echoed by Dickinson
Dees director John Cook, who said: "Principally, the main benefit for the buyer
is transparency - they can see what is on offer more quickly, giving better
consumer choice."
How will the HIPs affect people selling their home?
HIPs will also be beneficial for vendors, according to the
experts, helping people know exactly what they have to sell and what their home
has to offer.
Keith Pattinson managing director Justin Anim said: "Many
people will not know about the title of their property before they put it up for
sale.
"A HIP will bring a lot of clarity to the situation so
homeowners can be aware what their title really offers to a buyer."
Dickinson Dees director John Cook added that the introduction
of HIPs would benefit estate agents as they would be able to access reliable
information more quickly
For More information please click here
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