Hip. Hip. Hooray?

Wasted survey fees, long delays and disputes over fixtures and fittings are just some of the frustrations that Home Information Packs (or HIPs) are designed to remove. Sometimes called ‘sellers’ packs’, HIPs will be introduced in early 2007, with the intention of accelerating and improving the home buying process.

A HIP will cost the seller around £750 and will consist of key information about a property, including statements describing the property, forms giving information about the property and its contents, replies to standard searches, warranties and guarantees, and a Home Condition Report prepared by a Home Inspector. The level of detail in these reports is expected to be somewhere between the current simple ‘homebuyer’s report’ and a full structural survey.

There are already anticipated problems with HIPs such as:

• Cost
• Time taken to prepare
• Non-inclusion of valuations
• Quality of Inspectors
• Opportunity for ‘buck passing’ if the report is negligent

It remains to be seen whether the anticipated reduction in delays will compensate for these problems.

For further information please contact:
Michael Mitzman
Tel +44 (0)20 7440 7134
michael.mitzman@mishcon.com