Home Information Packs or HIPS were due to become mandatory for all sellers of residential properties with effect from 1 June 2007.
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The HIP was designed to provide prospective buyers of properties with a useful set of information surrounding the property including energy performance ratings, basic title information and searches to assist them in their decision as to whether to make an offer to purchase the property.
It was aimed to bring more certainty to what is a very volatile and often expensive procedure for buyers and sellers alike.
However, only 10 days before their launch a delay has been announced to 1 August. Not only that but following 1 August there will be a phasing in programme to add further confusion.
Why the delay?
The delay is largely as a result of legal proceedings taken by the Royal Institution of Chartered Surveyors.
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This application resulted in an order preventing the inclusion of the Energy Performance Certificate in the HIP until such time as resolution of the case.
The Energy Performance Certificate was seen as a key document providing buyers with easy to understand information on the properties energy efficiency and how that could be improved.
So what has changed?
- It will not be necessary to have a HIP on any property until 1 August 2007
- You will no longer have to wait for the HIP before you can place your property on the market for sale as long as you have ordered a HIP that will be sufficient
- The age of the Energy Performance Certificate on the property has been extended to up to 12 months old at the time the property is placed on the market for the time being and I suspect this may be lengthened further following future debate on this subject
- A HIP will only be required on residential properties with 4 bedrooms or more.
What will be classed as a 4 bedroom property?
The full regulations about what will be deemed to be a 4 bedroom property are yet to be determined.
I am sure the question will be asked for example; if I treat one of the rooms as a study is there any need for a HIP.
My initial view is that the regulations will ensure that this type of description or approach will be prevented much as the claim of business use of part of the property is very clearly defined within the present regulations.
In any event to describe your property as one with less bedrooms than its potential is surely a false economy.
The value of that additional bedroom to the purchase price far outweighs the cost of a HIP which is likely to be in the region of £400-£500.
So what now?
Watch this space and see what comes to light over the coming months.
For those who have supported and invested in this welcome change to the property market my sincere hope is that we wont be further disappointed come 1 August.
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