COMMUNITIES AND LOCAL
GOVERNMENT News Release (303) issued by COI News Distribution
Service. 8 December 2008
A new package of
measures to ensure consumers receive improved information in the
home buying and selling process was announced today by Housing
Minister Margaret Beckett.
As part of a series of further improvements to the Home
Information Pack (HIP), consumers will receive more helpful
information about their future home. A new Property Information
Questionnaire (PIQ) in the pack will provide a summary of
information about their property in one place, helping buyers make
decisions about whether to view a property, and ultimately whether
to make an offer.
Other improvements announced today to help ensure HIPs reach
their full potential include:
* Making HIPs available sooner - It is essential buyers are able
to see information in the HIP as soon as possible. However,
sellers can currently commission and pay for a HIP and then start
marketing their property for up to 28 days before the pack is
available, meaning some buyers may lose out by making decisions
about purchases without benefit of seeing the pack. We are
changing the regulations on first day marketing from April 6, to
ensure buyers have certainty the HIP will be available as soon as
a property comes onto the market, and that sellers get to see the
product they are paying for.
* Expanding HIP content - Details in PIQ will include flood risk
information, gas and electricity safety, service charges,
structural damage, and parking arrangements to help buyers make
decisions on whether to view and purchase a property. The new PIQ
will go alongside other important information in the pack, such as
energy performance certificates.
* Better service - It is important that both buyers and sellers
get a good service from professionals working in the industry;
know how the industry is regulated and where to go if they have
concerns or complaints. That is why the Government welcomes the
Office of Fair Trading conducting a comprehensive study of how the
home buying and selling works, looking at competition between
service providers and how consumer interests are served.
* Continuing to explore more options for consumers - the
Government will work with industry to explore ways of making sure
consumers have appropriate information about their future
property's condition. Housing Minister Margaret Beckett said:
"Home Information Packs are potentially a vital aid to
consumers who are seeking to purchase a home, and I am firmly
committed to ensuring they work as well as possible. That is why
the changes made today will make sure consumers are better
protected, better informed and better assisted when buying a home.
"It is essential that all buyers are able to see the HIP as
early as possible to ensure they are benefiting from this
important information, and that sellers are getting to see the
pack they are paying for. " The latest figures on HIPs show
that consumers are already benefiting from their introduction.
More than 1 million homes now have energy ratings as a result of
HIPs, helping home owners to potentially save money on their fuel
bills and cut carbon emissions. Greater competition in the
property searches market is also leading to reductions in costs
with some local authorities reducing their search fees by up to £120.
Previously published independent research by Europe Economics has
found HIPs are not impacting on house prices or hindering
transactions. The Government fully expects the changes being made
today will mean no extra burdens for estate agents, and for
example they will still be able to advise potential clients about
properties they expect to be coming onto the market. Under the
changes made today, from April 6 sellers will need to have the
basic HIP before their home is marketed, which is expected to take
3 to 5 days to compile
Notes to editors
1. Homeowners are required to provide a Home Information Pack
when marketing their homes for sale throughout England and Wales.
2. The pack must currently include evidence of title, terms of
sale and standard searches. An energy efficiency rating must also
be included in the report, giving consumers the choice to assess
the likely running costs of a property before they buy.
3. The current temporary provision for first day marketing allows
a property to be marketed without a HIP as long as the required
documents have been commissioned and paid for (or arrangements for
payment made) and there is an expectation they will arrive within
28 days. This temporary provision was due to expire on the 31
December but will now be extended 5 April 2009 when it will then expire.
4. The Property Information Questionnaire will be introduced into
HIPs for all properties marketed for sale from 6 April 2009. It
was developed with industry and is designed to provide information
that is not only important for buyers to know but is also easy for
sellers to provide without professional help. The full summary of
responses is also being published today and can be found at:
5. For leasehold properties, the new PIQ will include a summary
of the leasehold arrangements, replacing previous requirements to
obtain separate documents and speeding up the home buying process.
The temporary leasehold information provision requirement will
also become permanent. This means that from 1 January 2009 a copy
of the lease will continue to be the only extra information
required for leasehold properties.
6. The Government has also ended the transitional insurance cover provision.
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