Home Information Packs have been contentious since they were first proposed several years ago. The Home Condition Report, a key factor in the HIP, was dropped as a compulsory part of the package earlier this year, and there was a strong feeling in the industry and the media that the new Prime Minister may try to quietly drop the whole concept of HIPs.

Since the announcement that Ruth Kelly delayed HIP-Day to 1st August nothing more has been heard, and while this could still change, anybody wanting to sell a 4+ bedroom property must ensure that they comply with the new regulations and provide an HIP when it’s placed on the market.

As with any new legislation, there are areas where people are unsure of its interpretation. For instance what constitutes a 4 bedroom house? If one of the rooms is used as a study, does this mean it’s a 3 bedroom house and is therefore exempt form HIPs? Maybe, but as a 4 bed house will probably sell for thousands of pounds more than a 3 bed house, is it really worth trying to avoid paying a few hundred pounds for an HIP?

Policing is another issue. Trading Standards are due to check that estate agents are providing HIPs with every property, and any offenders are liable to a fine of £200 per day. Again it’s unclear whether this fine applies to the agency as a whole, or for each offending property.

Of course, there is one way to avoid the issue. If anyone selling a 4 bedroom property puts their property on the Market before August 1st they will avoid any problems, and may even have a 6 month window before they have to comply.

The feeling in the professions is that the government should hold fire on introducing HIPs for the time being. The Energy Performance Certificate could stand on it’s own and be a compulsory part of any property sale, as this would give purchasers confidence that the house meets safety standards, and provides an indication of energy costs.

The rest of the HIP package could then be re-thought thoroughly. The original concept of the HIP was to simplify and speed up the conveyancing process. In-depth discussion with conveyancers and solicitors who are ‘working at the coalface’ would provide real hands-on information regarding the cause of delays and problems so an effective solution could be developed.

Electronic conveyancing has been on the agenda for a while, but the uncertainties surrounding HIPs have postponed it’s introduction. It would make sense for all the issues involved with conveyancing to be considered together, then a cohesive system could be introduced which really would make the whole process of property sales smooth, efficient, and hopefully, more cost effective. Such things only happen in an ideal world, but we can always hope!

If you need any further advice on conveyancing or HIPs contact Debbie Matthews or Stephen Frith at Motley & Hope . Telephone Debbie or Stephen on 01767 600600 or e-mail debbiematthews@motleyandhope.co.uk or stephenfrith@motleyandhope.co.uk.