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Background

The government's intention by introducing HIPs is to improve the home buying and selling process. In order to achieve this, from 1 August 2007 they are insisting that the sellers of most residential properties have a HIP prepared. The HIP must be prepared before their property can be marketed to the general public. The HIP will contain a Home Condition Report (HCR) carried out by a Government licensed Home Inspector, council searches and title deeds. The idea is to offer more information at the outset so that a potential buyer can make an offer for a property based on factual information. This is should make property chains less stressful, quicker and less likely to abort.

Housing Act

The Housing Act was passed in November 2004 and the regulations were published by the DCLG in October 2005.

There is a small amount of opposition to the introduction of HIPs, but this is mostly from people with a vested interest in the general public wasting money under the present system. Most independent estate agents are positive about HIPs as it makes an offer a serious offer and will reduce the number of speculative sellers who market their property, but have no intention of moving. Some lenders are now supporting the substantial information in a HIP and the council of mortgage lenders have formally adopted a neutral position. The Law Society, who were initially against HIPs have now become a HIP provider themselves through MDA Advantage. More and more organisations are joining the pro HIP support group and the opposition's arguments have become weaker and weaker. First time buyers are expected to greatly benefit from HIPs as they will have all this information for free, saving them a potential £1000.

Home Inspection

The HCR will contain an energy performance certificate (i.e. how environmentally friendly is the property). A good scoring house will be one with loft insulation, double-glazing and a modern central heating system. A bad scoring house will have single pane windows and coal fires. To keep in line with the European directive from Brussels all properties in England and Wales will have an energy-rating certificate within the next 3 years.

More Information

• Can be found on the CLG web site.
• Call the House Inspect team on 0845 838 6008