With the majority of new property instructions now requiring a Home Information Pack, the saga that is the introduction of HIPs appears to have finally reached the end of the first chapter. Almost a year late from the original introduction date with some of the earlier requirements diluted, critics argue the scheme has been seriously undermined. Indeed, with matters such as obtaining EPCs for newly built properties and the ongoing confusion of the “drop dead date” this project has someway to run, although it was always clear there would be changes along the way. That said, HIPs have achieved the goals of improving awareness of the issues in house buying and selling and consumers are starting to reap the benefits of reduced search costs, faster turnaround times and increased commitment levels from sellers. With HIPs increasingly used in the conveyancing process, the ongoing debate about the use of personal local authority searches will no doubt continue to drive down prices and improve service levels.
1st January 2008 Clarification
With the recent changes concerning the reduced amount of leasehold information required and continuation of first day marketing, there is still some confusion about the current position. From 1st January 2008 there will be NO change from the current position; i.e. properties can be marketed once a HIP has been commissioned and only the lease is required for leasehold properties. Properties already on the market before the introduction of HIPs and newbuilds complying to the latest building regulations standards will still NOT need a HIP.
Market Consolidation
There are early signs that the highly fragmented HIP service provision market is starting to consolidate, with a number of firms facing up to the realities of reduced margins and the increased support overheads required to deliver HIPs and Energy Performance Certificates. One company that had been very prominent was Habitus, who have recently announced that they have put their energy assessment business into administration.
Media Coverage
We were pleased to be published in Paralegal Magazine, the RICS SafeAs newsletter, as well as being involved with the first podcast for the Partnership, details of which can be found here.
http://www.energy-performance-certificates.org/dea/podcasts/thepartnership-12-12-07
