Home Information Packs on track

The introduction of Home Information Packs HIPs - aimed at making the home buying and selling process easier, more efficient and ultimately less costly - remains on track - the Government having reported 'real progress' following discussions with the industry about how the scheme could operate, including the architecture and ownership of the programme, the structure of a certification scheme, and the shape of a 'dry run' planned for 2006.

HIPs, which will be introduced early in 2007, will hopefully inject much needed transparency into the home-buying and selling process by bringing together key information about a property's condition, energy efficiency and ownership before homes are marketed. The 'dry run' will enable all elements of the pack to be tested.

This is expected to track a representative sample of transactions, by buyers, sellers and others involved in the process, from the point of enquiry through to completion. Estate agents and others will be invited to participate fully in the exercise.

Other work will be commissioned to ensure that as many projected benefits as possible are realised for the consumer, but also including improvements to the condition and performance of the housing stock.

The costs of a pack will normally be met by the seller and could be deferred until a sale is completed. Such costs will be offset by savings on the cost of buying a new home and by faster transactions.

Competition between pack providers is likely to keep costs down for both buyers and sellers. ODPM Office of the Deputy Prime Minister will work with pack providers, local authorities and others to ensure that the packs can be put together quickly when people decide to move home.

In strictly limited circumstances, where there are problems in obtaining one or more elements of the pack quickly, sellers will nevertheless be able to market their homes with an incomplete pack.

Work will continue on the programme, in partnership with key players, during the summer months and the Government says a further update will be given in the autumn.

The HIP proposals are the outcome of extensive research into the home buying and selling process, and a major consultation about options for improvements.

Research across a range of housing markets confirmed the present home buying and selling process in England and Wales is among the slowest in Europe, is fraught with delays and failed transactions, encourages problems and does not look after the interests of home buyers and sellers.

The problem is that under the present system key information required to inform buyers and sellers decisions only becomes available after terms have been negotiated and agreed. As a result of this, research showed that 28% of transactions failed after terms had been agreed. HIPs should address this by ensuring key information is available up front.

2005-07-26 11:17:38 © Moneyextra.com