Countdown to HIPs

In less than a year, one of the most talked about developments in the housing market will be reality - the introduction of compulsory Home Information Packs (HIPs) on 1 June 2007.

They are still being trialled and the Office of the Deputy Prime Minister recently published a long awaited timeline for the implementation of HIPs (see below). So despite protests from some in the industry it's almost certain that HIPs will soon be with us.

Housing Minister, Yvette Cooper said: "Currently, one million pounds a day is wasted on buying and selling homes. Buyers often spend hundreds of pounds on valuations, legal advice and searches on sales that ultimately break down.

By providing key information at the beginning of the process, HIPs will prevent waste and significantly cut the number of sales that fall through. That is why consumer groups have been calling for them for years."¹

There is a view that rather than worry about HIPs, intermediaries would be well placed to look at the benefits to their respective businesses. For example, this is a prime opportunity to re-contact customers to inform them of what HIPs are all about. A recent report in Mortgage Strategy (12 June 2006) suggested that intermediaries could charge customers for interpreting HIPs, which are likely to be lengthy and, for some people, complicated - whether or not this turns out to be the case, there is certainly a great and new opportunity for intermediaries to hold new discussions about HIPs, with both prospective and existing customers.

The next landmarks: ¹

June 2006 - June 2007
Three-phase approach to product testing.

September 2006
Government to approve the first certification schemes to oversee the work of home inspectors.

November 2006 - June 2007
Product testing continues with phase two and three leading the programme into implementation on 1 June 2007.

For Intermediary Use Only

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