Advisers have applauded the coalition Government’s decision to scrap home information packs with immediate effect.
The coalition’s programme confirms that Hips will no longer be required and sellers will now only need an energy performance certificate to put their homes on the market.
Worldwide Financial Planning IFA Nick McBreen says: “Hips were as much use as a chocolate teapot. Getting rid of them means one less thing adding to costs for property sales.”
Baronworth Investment Services Limited director Michael Brill says: “It was not being used properly, mainly because solicitors did not trust the searches being done. They would still do the searches themselves and therefore the client was paying twice. I think Hips were a complete waste of money.”
Housing minister Grant Shapps says: “This is a great example of how this new Government is getting straight down to work by cutting away pointless red tape that is strangling the market.”
But e.surv business development director Richard Sexton says Hip providers may consider mounting a legal challenge. The Association of Home Information Pack Providers estimates that there are between 3,000 and 10,000 people whose livelihoods are either directly or indirectly dependent on Hips.
Countrywide says it will reimburse all clients who ordered Hips in the seven days before the Government’s decision to scrap the packs. It is also offering all clients who have taken marketing advice on a property sale from Countrywide since January 1 a free energy performance certificate if they put their property on the market before May 31.