HIPs UPDATE FOR 2009
On 8 December 2008 Margaret Beckett the Minister for Housing and Planning released a written statement about HIPs and the residential property market.
First Day Marketing
The ability of estate agents to immediately start to market properties on which they had received instructions was due to run out on 31 December 2008. This has now been extended until 5 April 2009.
From 6 April 2009 estate agents will need to have a basic HIP in place before they start marketing a property. However, the Minister believes that a basic HIP can be provided within 3 to 5 working days.
Content of a HIP
There has been little alteration to the content of a HIP apart from the need for a Property Information Questionnaire (PIQ) which will be a mandatory part of the HIP from the 6 April 2009. The PIQ will include a summary of the leasehold information for leasehold property together with a copy of the lease.
The local authority search of the property is still a mandatory element, but sellers will have up to 28 days to provide this, and their property can be marketed without the search information as soon as the basic HIP has been assembled.
A working group is considering how the property searches can be made simpler and easier to use.
The HCR is currently an optional part of the HIP and few have been provided. The government still feel that buyers would find information on the condition of property useful before deciding whether to make an offer to buy. Therefore, the government will establish a working group to explore options for making condition information available from existing practitioners, including home inspectors. This means that HCRs or similar products are likely to become mandatory in the future.
Leasehold information, currently mandatory in the HIP, will be authorised (and hence discretionary) from 1 January 2009 (although the need for the HIP to have a copy of the lease remains a mandatory requirement). However, basic leasehold information will be contained within the PIQ from 6 April 2009.
Property Information Questionnaire (PIQ)
The PIQ will be a mandatory document from 6 April 2009 and will cover a range of basic information that it is believed can be easily completed by the seller. The PIQ will include
Postal address, name of seller and date the PIQ was completed
When the property was bought
If the property is listed
The council tax band
Parking arrangements
Whether there is any damage to the property from storm or fire and if so if subject to an insurance claim
If there has been flooding and if the Environment Agency’s flood website has been checked
Any treatment for wet/dry rot or damp and if so any guarantees
If there is central heating and its type and when last serviced
When electrical wiring last checked
Which services are connected to the property and type (ie mains or other)
Details of changes to the property (eg alterations, extensions) and if so if relevant permissions obtained
If windows have been replaced and if so details of changes and guarantees
Access arrangements
Leasehold information where appropriate eg
Who collects ground rent and service charge and their amounts
Length of lease left
Amount of buildings insurance
Details of proposed or ongoing works
Use restrictions in the lease
Details of parking or communal gardens
A slightly amended PIQ is available for new homes
Enforcement and Service Standards
The Minister also promised better enforcement against estate agents who break the law. The Minister believes the new regulations will make it easier for TSOs to enforce the requirements of the HIP regulations.
The OFT are also to conduct a comprehensive study of home buying and selling. They will consider competition between service providers and how consumer interests are served.
David Hughes
12 December 2008