With the legislation about to be extended to new build properties, how have HIPs already affected the housing market?
Nicholas Leeming, major client director of propertyfinder.com:
Where HIPs are concerned, the only thing the government has been consistent on is indecision. The main impact on the market has been from dithering over implementation, rather than the actual legislation. Now that HIPs are compulsory for almost all properties, they are just an expensive, unavoidable inconvenience – much like death and taxes.
Where were they introduced?
The legislation was initially intended to speed up the process of buying and selling a home by making vital information on a property available to buyers upfront. This would prevent people pulling out of purchases further down the line. But after several U-turns, the government burdened the market with a diluted HIP that does not provide the information a buyer needs. Without a structural survey, a buyer and their mortgage lender don’t have the information to guarantee they can proceed with buying the property.
Agent Response
Agents tell me HIPs have done nothing to speed up transactions for this reason – there’s nothing in them of use. Buyers aren’t even looking at them and don’t ask to see them. Solicitors often refuse to rely on the information they contain.
EPCs
Supporters (mostly those with a vested interest) make a lot of positive noise about EPCs. But buying a home is an emotive process and the energy efficiency of the property will not influence the decision of the vast majority of buyers. HIPs have become about complying with an EU directive on reducing carbon emissions, not about helping buyers and sellers of property.
New Build Properties
Which is precisely why this pointless legislation is being extended to recent new build properties. New properties are built to the latest building regulatory standards. A HIP won’t tell buyers anything new but with guaranteed high standards of energy efficiency, dragging them under the legislative net will undoubtedly boost the government’s energy efficiency statistics. So the government can furnish their green credentials at the expense of others. The only other outcome of extending the reach of HIPs will be to create work to placate the HIP providers who suffered from the earlier indecision and are now struggling in a slower housing market.
Comments
With the housing market becoming a buyers' market - those buyers who can get finance are going to have the pick of the crop and Sellers will want to secure their sales far quicker. This is where HIPs will come into their own. Agents need to be reviewing their choice of HIP provider to ensure that they can supply HIPs which will actually speed up the process. If the HIPs currently used are worthless it is because they are being sold on price, not quality. Think of an auction pack, everything is provided up front and exchange of contracts happens on the fall of the hammer. The only additinal information in an auction pack over a HIP is covenants and easements referred to in the Title and Sellers Information. Pick a HIP provider that includes this information and maybe HIPs can make a difference? It's your choice.
Posted by: Beth Rudolf | April 16, 2008 09:22 AM
I have a HIP=paid for and sitting on my desk. My buyer has not has asked for any of the information in it.
I am told by my solicitor that the buyer is diong his own searches. please tell me how the goverment is going to close the gap between the information it is getting free about the energy effiency or not of the housing stock and doing something about it. It would be cheaper in the long term if the government paid for inefficient buildings to be insulated--
Posted by: Alison Allum | June 9, 2008 04:39 PM
To whom it may Concern
Decisions are given in principal within 24 hours of inquires (subject information received) we will today’s open market value less discount for express purchase.
Requirements are as follows
• We are in the market for property bundles i.e. Units from 10 upto 1000 units
• They can be new build or in need of refurbishment type of properties.
• From houses to flats, and all types of commercial also offices, warehouses, factories and distribution units. Retail units or any type of income producing setup.
• The location/s can be either a site or spread out through over different sites in the country.
• We are actively seeking property throughout the United Kingdom and we will give immediate decisions in principle from the offset.
• Properties that include local area unrest or economic social problems that may cause problems for effective marketing are all accepted unconditionally.
• Minimum purchase of £1.5m based true open market values.
• We will retain the integrity in the market by, retaining the vast majority of the property purchased for at least 5 years, and then we will dripping them out on a market upturn.
• This service allows you or your clients liquidated immediately from unprofitable projects, and reinvest in other projects that more profitable and without devaluing any stock which they may decide hold. Using this service they will be better positioned to wait for market upturn.
• We look to discount down for today’s true open market value; we will arrive at a final price from a report carried out by a chartered surveyor. We may have 2 or 3 reports commissioned during the whole process.
• To finalize the process for any purchases; we will aim to complete within 8 weeks from the first report (subject to contact and any major property price variables).
I wondering if you can help, I am looking for a property bundles i.e. Units from 10 upto 1000 units.
They can be new build or in need of refurbishment, I happy with either.
From houses to flats, or they can be just a shell, or a mixture.
Anywhere in the UK, any area, I am open minded even if it comes with its own problems.
Do you know the right people in the know, or anyone knows someone who moves in these circles who has this kind of knowledge.
I like to pick one up this week, so any help you can give would be greatly welcome.
Karpa Singh
0794 777 9435
Posted by: karpa | June 13, 2008 08:02 AM