| Buying and selling a property doesn't always go | | | | • Replies to standard enquiries (whether you |
| according to plan. One in four transactions collapse | | | | are aware of any problems with the property) |
| before contracts are exchanged, wasting time and | | | | • Copies of any planning, listed building and |
| money. | | | | building regulations, consents and approvals |
| The government is concerned that many house | | | | • Copies of warranties and guarantees for |
| purchases fall through because of the time it takes to | | | | new properties |
| get to completion. Where there is a chain of buyers | | | | • Any guarantees for work that has been |
| and sellers, just one person pulling out can ruin a whole | | | | carried out on the property |
| series of purchases, costing all those involved money, | | | | • A draft contract |
| time and patience. Government research suggests | | | | • A house condition report based on a |
| that £350 million is wasted by consumers every | | | | professional structural survey of the property |
| year as a result of aborted housing transactions. The | | | | Some estate agents are sceptical of the plans. |
| government's solution to this problem is the introduction | | | | President of the National Association of Estate |
| of Home Information Packs (HIPs). | | | | Agents, Julie Westby says: "It imposes extra costs |
| From 1st Juke 2007 all home owners in England and | | | | and red tape in an already complex market. It could |
| Wales will need to arrange for a Home Information | | | | have serious repercussions on housing transactions |
| Pack to be prepared before putting their homes up for | | | | and consequently on house prices." Also, introduction |
| sale. The idea is that property sellers will produce a | | | | of the HIP could slow the housing market as each |
| Home Information Pack (HIP) for potential buyers to | | | | seller will have to find at least £600 to compile a |
| see before they make an offer. | | | | pack. |
| HIP will not be required for: | | | | All lenders recognise the need to improve the |
| • properties in Scotland and Northern Ireland | | | | conveyance process, and there is widespread support |
| • private sales where the property is not | | | | for the e-conveyance initiative by the Land Registry. |
| offered on the open market | | | | However, lenders have had mixed views about HIPs |
| • non-residential property | | | | since the proposals were first developed. Members |
| • homes held on a lease of less than 21 years | | | | are not persuaded at this stage that the perceived |
| • portfolios of residential property, etc. | | | | consumer benefits will be achieved. |
| Home Information Packs will provide important | | | | The Council of Mortgage Lender's head of policy |
| information to prospective purchasers at the very start | | | | Jackie Bennett said: "Lenders are generally not anti-Hip |
| of their interest in a new home, giving increased | | | | in principle. It is the practicalities, the government's |
| transparency on key issues and meaning any offer to | | | | expectations, and the possible unintended |
| purchase is based on an informed decision. Currently, | | | | consequences that cause them concern." |
| much of this essential information only comes to light | | | | In a clear sign of the change in attitudes towards HIPs, |
| when an offer has been made and accepted. In the | | | | the Council of Mortgage Lenders (CML) has published |
| meantime, buyers are negotiating in the dark and are | | | | a new report showing that lenders are happy to |
| often wasting money on legal fees, searches and | | | | support the use of Home Information Packs. According |
| surveys. | | | | to a CML survey, two thirds of lenders intend to |
| The pack includes: | | | | provide packs. |
| • evidence of title | | | | |