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| Version 1 | Version 2 |
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| Hips home packs get full roll-out | Hips home packs get full roll-out |
| (29 minutes later) | |
| Home information packs (Hips) will be required for all properties being sold in England and Wales from 14 December, the government has announced. | Home information packs (Hips) will be required for all properties being sold in England and Wales from 14 December, the government has announced. |
| Since September, all properties with three or more bedrooms have required a Hip before they can be sold. | Since September, all properties with three or more bedrooms have required a Hip before they can be sold. |
| The packs have proved controversial, with many critics claiming that they have made it more difficult and expensive to sell property. | The packs have proved controversial, with many critics claiming that they have made it more difficult and expensive to sell property. |
| The government insists the packs are bringing benefits to consumers. | The government insists the packs are bringing benefits to consumers. |
| The average cost of a Hip is between £300 and £350. | |
| Green rating | Green rating |
| Hips and EPCs are already helping consumers to save hundreds of pounds off their fuel bills and are cutting search costs too Housing Minister Yvette Cooper | Hips and EPCs are already helping consumers to save hundreds of pounds off their fuel bills and are cutting search costs too Housing Minister Yvette Cooper |
| Housing Minister Yvette Cooper said the roll-out of Hips would help first-time buyers by providing them with more information. | Housing Minister Yvette Cooper said the roll-out of Hips would help first-time buyers by providing them with more information. |
| Energy performance certificates (EPCs) will give homes an efficiency rating of A - G. | Energy performance certificates (EPCs) will give homes an efficiency rating of A - G. |
| Buyers whose homes score badly will receive extra help from the new Green Homes Service announced this week by the prime minister. | Buyers whose homes score badly will receive extra help from the new Green Homes Service announced this week by the prime minister. |
| "Hips and EPCs are already helping consumers to save hundreds of pounds off their fuel bills and are cutting search costs too," said Ms Cooper. | "Hips and EPCs are already helping consumers to save hundreds of pounds off their fuel bills and are cutting search costs too," said Ms Cooper. |
| "All home buyers will be able to benefit from energy efficiency advice, with those receiving low green ratings of 'F' and 'G' especially targeted for support and grants," she added. | "All home buyers will be able to benefit from energy efficiency advice, with those receiving low green ratings of 'F' and 'G' especially targeted for support and grants," she added. |
| PACKS INCLUDE: An energy performance certificateCopies of planning, listed building or building regulations consentsLocal searchesGuarantees for any work on the property Q&A: Hips explained | PACKS INCLUDE: An energy performance certificateCopies of planning, listed building or building regulations consentsLocal searchesGuarantees for any work on the property Q&A: Hips explained |
| The decision to extend Hips to all properties follows an independent review carried out by Europe Economics. | The decision to extend Hips to all properties follows an independent review carried out by Europe Economics. |
| This found "no evidence of any impact on transactions or prices" beyond a "predicted" and "marginal" short-term impact on new listings. | This found "no evidence of any impact on transactions or prices" beyond a "predicted" and "marginal" short-term impact on new listings. |
| Leasehold problems | Leasehold problems |
| The report also concluded that any delay to the planned roll-out due to "changing housing market conditions" would cause "greater market difficulties and uncertainties". | The report also concluded that any delay to the planned roll-out due to "changing housing market conditions" would cause "greater market difficulties and uncertainties". |
| But the government acknowledges the owners of leasehold properties have faced difficulties. | But the government acknowledges the owners of leasehold properties have faced difficulties. |
| In some cases it has been difficult to obtain leasehold documents quickly, and "disproportionate charges" have on occasion been requested. | In some cases it has been difficult to obtain leasehold documents quickly, and "disproportionate charges" have on occasion been requested. |
| Rolling Hips out to one and two bed properties could find first-time-buyers caught between a rock and a hard place Jeremy Leaf, RICS At the moment sellers must commission a Hip before they can put their property on the market, but have a 28-day window for it to be finalised. | Rolling Hips out to one and two bed properties could find first-time-buyers caught between a rock and a hard place Jeremy Leaf, RICS At the moment sellers must commission a Hip before they can put their property on the market, but have a 28-day window for it to be finalised. |
| The government has now said it will extend for six months the current exemption which lets leasehold documents be provided after the 28-day deadline. | The government has now said it will extend for six months the current exemption which lets leasehold documents be provided after the 28-day deadline. |
| It will also delay the introduction of new rules meaning a property cannot be put on the market until the Hip has been completed. | It will also delay the introduction of new rules meaning a property cannot be put on the market until the Hip has been completed. |
| This change had been due to take effect on 1 January 2008, but will now not apply until 1 June 2008. | This change had been due to take effect on 1 January 2008, but will now not apply until 1 June 2008. |
| 'Between a rock and a hard place' | 'Between a rock and a hard place' |
| The government's decision to extend Hips has been criticised by the Royal Institution of Chartered Surveyors (Rics). | The government's decision to extend Hips has been criticised by the Royal Institution of Chartered Surveyors (Rics). |
| Rics and the National Association of Estate Agents (NAEA) believe the introduction of Hips has already reduced the number of larger properties on the market. | Rics and the National Association of Estate Agents (NAEA) believe the introduction of Hips has already reduced the number of larger properties on the market. |
| Rics housing spokesman Jeremy Leaf argues widening the scope of the scheme will have a negative effect on those people trying to get onto the property ladder. | Rics housing spokesman Jeremy Leaf argues widening the scope of the scheme will have a negative effect on those people trying to get onto the property ladder. |
| "Rolling Hips out to one and two-bed properties could find first-time buyers caught between a rock and a hard place as accessibility to the market would go off the scale," he said. | "Rolling Hips out to one and two-bed properties could find first-time buyers caught between a rock and a hard place as accessibility to the market would go off the scale," he said. |
| "If the Housing Minister genuinely wants to improve the plight of first-time buyers, she should not continue with this flawed policy," he added. | "If the Housing Minister genuinely wants to improve the plight of first-time buyers, she should not continue with this flawed policy," he added. |
| But the extension has been welcomed by the Association of Hip Providers (AHIPP). | But the extension has been welcomed by the Association of Hip Providers (AHIPP). |
| "The independent research by Europe Economics dispels suggestions by RICS and NAEA that Hips are having a detrimental impact on the market place," said AHIPP deputy director general Paul Broadhead. | "The independent research by Europe Economics dispels suggestions by RICS and NAEA that Hips are having a detrimental impact on the market place," said AHIPP deputy director general Paul Broadhead. |
| "Hips are here to stay. We can now build upon this foundation and really revolutionise the market for the benefit of the consumer and the industry," he added. | "Hips are here to stay. We can now build upon this foundation and really revolutionise the market for the benefit of the consumer and the industry," he added. |
| Have you been affected by the issues covered in this story? Send us your comments using the form below. This is a selection of the comments we have received so far: | |
| I have just received the Hip for the property i am selling and am very disappointed. It is 61 pages long and provides nothing which the conveyancers searches would not provide. The majority of the report consists of terms and conditions and disclaimers. It is a waste of money and just adds more costs and regulation to an already expensive process. Why is the government creating problems when there isn't one?Erkay, London, UK | |
| I spent 8 months last year trying to complete the purchase of a flat in London, only to find time that the seller had split the property into two flats without planning permission. During the course of the 8 months I spent £800 on surveys and solicitors fees. Hips are already way overdue, and cost the owner very little in comparison to the money they're likely to make on selling their property. We demand guarantees from everything else we buy, why not houses?Ross Milne, Stavanger, Norway | |
| Originally I was very anti HIPS, I then 'bought' a house and had a survey done at a cost of £450 only to have the seller withdraw when he was asked to buy a HIPS. He was clearly just testing the market at my expense, if he had needed a HIP before he could put his house on the market I believe he would not have done so and I would not have lost £450. I am now in favour of HIPs since they do act as a disincentive to these types of people.bobpenarth, penarth wales | |
| Home owners have to go to all this additional work for buyers (which I actually do agree with and consider to be beneficial) and yet buyers can still agree to purchase a property without actually already having a mortgage agreed in principle - and in some cases have to pull out of purchasing a property weeks down the line??Andi, Wantage, Oxfordshire | |
| As an estate agent that has seen these changes implemented they do seem to be a complete waste of time - we haven't had a single instance of a buyer requesting to see a HIPs before putting in an offer on a property and most solicitors seem to be requesting their own searches regardless of what we send them.Andy, London | |
| Sounds to me like there is some bad news burying going on here in light of recent crises. people in the East Kent region will have struggled to even see a HIP as South East Water have not been able to provide their part of the packs yet. How does showing a first time buyer an energy performance certificate help them? as they would still have seen everything else contained in a HIP.Neal Lynch, Canterbury, Kent | |
| Of course Rics and NAEA say that hips are bad - it takes away from the profit they make, as they cannot lie to the buyers! | |
| Of course the AHIPP are happy, they will have information, which is great to use in bargaining down the estate agents! | |
| In the end, it is the buyers who will cover the cost of the hips, so the Rics and NAEA should stop their whinging and work a little, like the first time buyers do who can barely afford the prices as it is!Pietr Huhn, london | |
| As an Estate Agent having had to deal with HIP`s on 3 & 4 bed houses, everyone I have spoken to have confirmed what a complete waste of time and money HIPs are...they are totally worthless. The only good part is the EPC (Energy Performance Certificate). If it wasnt so serious this would be a joke!andrew vos, Edgware, Middlesex | |
| HIPS are, in my view, a waste of money. They cause duplication of effort because Buyers' solicitors simply repeat the same searches - and charge again.Older properties cannot comply with thermal insulation etc, why pay to find out the obvious?Karl W Smith, Heckington, UK | |
| Time & Time again this government just ploughs on with ill thought out ideas and refuses to listen to the masses who think that HIPs are a complete waste of time and money. This latest action will simply serve to put more and more people off buying & selling property which is the last thing that is needed given the current state of the property market and a slowing economy.Peter Rudd, Cheltenham England | |
| I just had to have a HIPS done on the property I am selling, and it basically isn't worth the paper it's written on, let alone the £350 it cost to have done. It said everything in my property is "average", except the lighting which was "excellent" due to having energy efficient bulbs. Do we really need to pay all that for a report of nothing but obvious statements that any average person could see for themselves or that a surveyor would note anyway? Every estate agent i've met seems to think they're an expensive waste of time and I absolutely agree. Lucky for me my estate agent has paid for mine, but the whole thing is complete and utter rubbish. Mel, Sandwich, Kent | |
| As a practising estate agent and a member of the NAEA I am absolutely flabbergasted that the government have decided to introduce HIPS to all properties. Since the introduction of HIPS on all 3 & 4 bedroom properties not one person has asked to see the HIP, and most solicitors we deal with will not accept the searches provided with the HIP and are encouraging their clients to pay for new ones. HIPS do not benefit anyone apart from the HIP providers themselves who make large amounts of money off the back of them as well as the government who are able to charge VAT. This is not a solution to help first time buyers and will only assist in the already worrying slowdown in the UK housing market. Congratulations Yvette Cooper you may have just sent the UK housing market into a devastating nose dive and sealed the governments fate. Paul Bottomley, Huddersfield, West Yorkshire | |
| This move is an unwise step of additional costs considering all the other indicators in the current property market -1 - interest rates2 - inflation3 - rising repossesions4 - increasing personal debt5 - slowing property price growth in London and in some UK locations price decline.6 - global economic slowdown. | |
| By introducing yet another 'tax' into this market you are suppressing the incentive to sell even further and encourage a 'wait and see' attitude.The only 'get out jail free' then would be to slash interest rates or change the stamp duty thresholds encouraging a bit more 'trading up' on property.Ross, London, England | |
| There is already a two month back-log with drainage searches down here. Management questionnaires take weeks to answer. Lenders are likely to ignore the Pack. The whole thing is ill-conceived and impracticable...a waste of an opportunity to save paper and be more eco-friendly.Pat Richards, Hove, East Sussex | |
| I work as an estate agent and I can confirm that these hips reports haven't benefited anybody, it would appear that buyers just aren't interested, in addition the buyers solicitors don't use the packs during the conveyancing process making them pointless. For Paul Broadhead to say they revolutionise the market is a joke, what planet is he on!! They are a punitive and expensive waste of money. What also irritates me is the governments refusal to listen to people in the industry. If these packs really helped the property market why wouldn't we support them?? Richard Winckley, Hampton, England | |
| I would love to know where they got this information from; 'This found "no evidence of any impact on transactions or prices" beyond a "predicted" and "marginal" short-term impact on new listings.' | |
| I work within the industry and the only group that seems in favour of HIPPS are the HIPP providers and the government. Every other member of the Buying and Selling production line has been vehemently against these packs from the very start. They will punish the smaller home owners and make properties even harder to come by. | |
| The legislation was rushed through as proven by the delayed launch dates... and is still a long way from being satisfactory. | |
| And yet every speech that comes from the government states how well the packs are doing with isolated problems. | |
| Well in Brighton & Hove there are not isoloated problems there is widespread outrage!!!!Stephen, Hove - England | |
| The 'listening' Gordon Brown government has done anything but listen to the concerns of NAEA, RICS CML and The Law Society thus far and simply railroaded this ludicrous policy through, contributing to the curret turmoil in the market. Paul Broadhead may think 'Hips are here to stay', but the Conservatives have pledged to scrap them, which would already have happened if Gordon hadn't 'bottled' a general electionSandra Buckland, Epsom Surrey | |
| I cannot believe Yvette Cooper continues to ignore the advice of the true professionals but instead believes the HIP providers who quite obviously suggest HIPS are the best thing since sliced bread. Of course the HIP providers do because they are making money out of this fiasco at the cost of those trying to sell their homes. When will this idiot Yvette Cooper admit that she has wasted £20 million of tax payers money to date and is continuing to cause major problems to a market she clearly knows nothing about. From an Estate Agent who has been practising longer than Cooperwoman has been in Government.D J Brentnall, King's Lynn England | |
| HIPS has had a major effect on the property market, fewer houses on the market, giving a feel of a reccession,read the wrong paper and you would think we are already in one.HIPS serves no purpose, it does not speed up nor enhance the purchase of a property, in fact it inhibits and slows down the whole proceedure. The fact is, the scheme is another govrnment ploy to tax and invade our privacy. Most people are really not that bothered if when buying a house the heating or lighting is a few pound a year more, and they would not really know anyway as they would have nothing to base it on.If they want to speed up the process, get solicitors to communicate better, make an offer binding as in Scotland,haveing an EPC certainly isn't go be the answer The government as with most things have lost the plot. If they want to be pro active then call a general election and let the nation speakbrian melzack, london | |
| What would be far more helpful was if the VENDOR was to supply a survey with their property so any prospective purchaser would know what is required with the property before agreeing to a purchase and then finding all potential problems the property holds when the PURCHASER has a survey generated themselves.peter grahm, bexley england | |