The Conservative government said it had taken swift action to abolish HIPs to avoid uncertainty and prevent a slump in the housing market after it signalled its intention to get rid of Hips in its coalition agreement last week. Ministers estimate that the move will save consumers around £870 million during the coming 10 years.
The abolition of HIPs has broadly been welcomed by the property industry, which has long called for them to scrapped
Respected Norwich Conveyancing Solicitors Rogers & Norton, have been quoted as saying : “The problem with Hips was that the information was often compiled many months before a buyer was found and, therefore, the searches provided were out of date and we ended up in a situation where the cost of searches ended up being duplicated and paid by both buyer and seller, which is clearly unsatisfactory.
“The Hip requirement also meant that a number of speculative sellers were deterred from placing their property on the market as they were unwilling to incur the cost of obtaining a Hip just for the privilege of placing their house on the market. ”
Melissa Richards, head of the conveyancing team at Steeles Law, which has offices conducting Conveyancing in Norwich, Dis and London said: “Suspending Hips will reduce the cost of selling a home and will remove unnecessary regulation from the home-selling process. "
“It will also mean a saving for sellers of approximately £870m over 10 years, giving sellers more money in their pockets to spend in the wider economy. ”
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