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Will the end of HIPs help the housing market ?

Let’s talk politics !

The question :

What is the similarity between the UK electoral system and HIPs?

The answer :

Neither are perfect but there are no better alternatives !

Following the government’s announcement of the abolition of HIPs, home owners selling their properties are no longer required to produce a home information pack. Eric Pickles, communities secretary, this morning laid an order before parliament suspending HIPS, pending primary legislation for a permanent abolition.

He stated:

“The expensive and unnecessary home information pack has increased the cost and hassle of selling homes and is stifling a fragile housing market. That is why I am taking emergency action to suspend the HIP, bringing down the cost of selling a home and removing unnecessary regulation from the home buying process.

This action will encourage sellers back into the market, and help the market as a whole and the economy recover. “

My prediction is that it will have no impact at all.   HIPs have been consistently made a scapegoat as the reason for the collapse of the housing market, primarily by estate agents. The irony is that I suspect that, if and when agents looks at their data in twelve months time, they will see that their abort rate post-HIP will far outnumber their  pre-HIP rate. At Fridaysmove we have seen abort rates decrease by over 10% since the introduction of HIPs.  This is due firstly to the fact that the upfront cost of a  HIP resulted in a more serious seller, and secondly that buyer’s lawyers had most of the legal documentation readily available, thereby enhancing the speed of transaction.

I predict that, within the next two years, agents will be seeking the introduction of something resembling HIPs.

The website ‘Estate Agency Today’ quotes the following comment:

 “So HIPs are suspended. . EPCs still required and all the other parts still required for conveyancing. . . how long before we realise the HIP wasn’t that bad! . . . “

Within 28 days of putting their home on the market, a seller is now only required to obtain an ‘energy performance certificate’ (EPC). This shows how energy efficient a property is.  Fridaysmove can, of course, offer these at a rate that is significantly cheaper than the typical cost of approximately £60.

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