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Government lays HIPs to rest

Government lays HIPs to rest

Category: Mortgages

Updated: 20/05/2010
First Published: 20/05/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
The controversial Home Information Pack (HIP) has been scrapped by the new coalition government.

Since 2007, home sellers have been obliged to pay for a HIP before they could put their property on the market.

However, the requirement has now been suspended with immediate effect, with official legislation to abolish them completely to follow.

In order to help people reduce energy bills and tackle climate change, one element of the HIP, the energy performance certificate, is being retained.

The seller will have up to 28 days after the home is placed on the market to provide the certificate.

The government said the move was an important step at a time when the recovery in the housing market was looking fragile.

HIPs were said to be holding back the housing market because sellers were having to fork-out extra cash, sometimes hundreds of pounds, just to be able to put their home up for sale.

The government added that the suspension would reduce the cost of selling a home, remove a layer of regulation from the process and provide a welcome help to the housing market during the recovery.

It is also predicted to save consumers around £870 million over ten years, giving sellers more money in their pocket to spend in the wider economy.

The chief executive of the National Association of Estate Agents, Peter Bolton King, said the suspension was very welcome news.

"It will be greeted enthusiastically by both the housing market and house buyers, few of whom have paid much attention to these pointless packs.

"It is also good news for sellers. They no longer need to shell out hundreds of pounds for a piece of pointless regulation that benefits no one."

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