One and two bedroom properties and HIPs Update

Report from Rob Hailstone CEO, Hipag. 23^rd November 2007

I have now re read Yvette Cooper’s press release and studied some other relevant documents. I can now confirm that the main changes to the HIPs legislation are;

• Before most properties with one or two bedrooms can be marketed (as from the 14^th December) a HIP will have to have been formally requested. This falls in line with the current requirements for properties with three bedrooms or more.
• The temporary provisions enabling marketing to commence, once a HIP has been formally requested, will now be extended until the 1^st June 2008.
• Most of the leasehold information, now classed as Required (compulsory) will become Authorised (voluntary). The exception is the Lease itself, which must be included in the HIP.
• No drop dead date (i.e. when properties on the market without HIPs will need one) has been announced. It is certainly not from January next year.

Press Release

Housing Minister Yvette Cooper has announced that Home Information Packs will be required for 1 and 2 bedroom properties from 14 December.  This finally extends HIPs to residential properties of all kinds.  Rob Hailstone, CEO of leading HIP provider Hipag Services, points out that the Minister’s statement also contains a warning that problems have been experienced with leasehold properties.

Says Hailstone, ‘The Government has reduced the status of important leasehold information from compulsory to voluntary. I can see why, most pack providers are not geared up to request it quickly. However, if you want faster leasehold transactions you will still need to obtain that information and include it in the Hip. Fortunately, Hipag works with a large nationwide group of experienced property lawyers and as a result we are able to and will include that essential leasehold information in as many packs as possible.’

‘It’s good news for the thousands of Domestic Energy Assessors that HIPs will be compulsory for one and two bedroom properties as from the 14th December. They can now look forward to Christmas with more enthusiasm. First time buyers will also benefit because they will receive some important information free.’

‘Extending the transitional arrangements, so that early marketing can continue taking place is sensible. However, the Government must begin enforcing this legislation. Not all estate agents and Hip providers are playing by the rules, creating an uneven playing field, with those breaching, actually benefiting.’ 

Rob Hailstone CEO

Hipag

23^rd November 2007

 
Osbornes Estate Agents, 26, South Street, Wareham, Dorset. BH20 4LT. Tel 01929 555050

Osbornes Limited Registered in England No 6068259