Climbdown On HIPs
Government plans to require home sellers to pay hundreds of pounds for house surveys have been watered down.
On Tuesday the Government announced a surprise U-turn with regards to its plans for Home Information Packs. It has decided that certain aspects - due to be introduced in June 2007 - will no longer be mandatory. In particular, the controversial Home Condition Report - a survey designed to let buyers know the state of the property before they put in an offer - will no longer be required. Instead, it will be voluntary for sellers to include one in their Home Information Pack.
However, along with documented searches and title deeds, sellers will be required to provide evidence of Energy Performance Certificates, thus 'enabling buyers and sellers to get A-G ratings on their homes similar to fridge ratings'. This is expected to cost in the region of £200.
I used to think that Home Information Packs were a good idea. After all, getting most of the relevant information together for the buyer before putting a house on the market seemed like a good plan. It could have made the buying and selling process quicker and easier.
But costs for the sellers of around £1,000 were then bandied about, followed by mortgage lenders intimating that they would still want many prospective buyers to pay for a valuation. There was also the question of whether there would be enough trained inspectors in place to produce Home Condition Reports.
It's hardly surprising the Government has now backtracked and, all things considered, it's a sensible move. However, it has said that Home Condition Reports could still become compulsory in future, which still leaves a lot of needless uncertainty regarding this whole situation.