HIPs Happening!
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Russell Manning, Managing Director, Manning Stainton |
3rd April 2007
Russell Manning, Managing Director of West Yorkshire Estate Agents, Manning Stainton is delighted that the Government have finally confirmed that Home Information Packs will be a compulsory requirement for almost all sellers of domestic property in England and Wales with effect from the 1st June 2007.
This is his statement:-
Originally dreamt up seven years ago, in an attempt to help speed the house selling process and thereby improve the experience of buyers and sellers alike, the concept has now been all but eclipsed by the inclusion of an Energy Performance Certificate (EPC). The Energy Performance Certificate is the result of an EU directive to help cut CO2 emissions and the original pack included a Home Condition Report to give buyers an indication of the property’s condition ahead of submitting an offer.
We feel that this would have been of great benefit to buyers and sellers in delivering a speedier and more transparent transaction.
However, the scheme we now face does have some merit. Many chains are delayed by the reluctance of buyers to commission a search until all other things are in place such as a mortgage offer or survey. The inclusion of a search in a HIP could reduce the Conveyancing period by two to three weeks as it is often the last piece in the jigsaw.
Defects in Legal Title which frustrate some transactions may well be discovered earlier and dealt with more effectively.
The merits of an Energy Performance Certificate (EPC) are questionable. We do not envisage them having any major effect on the decision to purchase or not. Many people know that cavity wall insulation, double glazing, loft insulation and low wattage electricity bulbs will all cut power consumption. Nor do we see the EPC affecting value. Some of the least efficient homes are the most desirable in our experience!
What will it mean to the average house seller?
When the new system has had the chance to settle in, by mid Autumn, we envisage that a Home Information Pack will be available within three days of instruction to sell being given by an owner. This is around the same length of time it takes to get a property on the market at present as sales particulars are prepared and approved and Money Laundering obligations undertaken.
There will be a small additional charge for providing the pack but we do not envisage any advance payment being required.
Perhaps the most significant factor will be the loss of a ‘no sale – no charge’ market place, at least in the short term. This may prevent the speculative seller from entering the market. We shall see.
The secret to a successful transition will involve a great deal of joined up thinking. At Manning Stainton we see the need for a seamless process - from the client confirming his instruction to market the property through to legal completion.
By exerting control over the constituent parts of the transaction from estate agency to the preparation of the Energy Performance Certificate by our own Domestic Energy Assessors (DEA) our own teams of Conveyancing Solicitors and the preparation of the HIP itself, we believe we have the chance to make the whole house selling process better for both Manning Stainton and our clients.
Agents who do not accept the new world order and fight the changes may well find themselves losing out.
Russell Manning
Managing Director
Manning Stainton
