The compulsion date for home information packs has been confirmed as June 1, 2007 by the Government yesterday.
Hips are being introduced to reform the home buying and selling process, and will become mandatory requirements from June 2007.
The Government says 1m a day is wasted on failed transactions as buyers are currently spending hundreds of pounds on valuations, legal advice and searches that often break down.
With key information being provided up front, Hips will significantly reduce the number of sales falling through.
Hips are expected to cost 600 plus VAT on average, with most of these costs being paid for by the buyer.
A certification scheme is being developed to provide quality assurance and manage the home condition report and home inspector registers, expectedto be operating by summer, 2006. A ‘dry run’ will follow later in the year designed to provide assurance to the industry and the public in advance of mandatory introduction on June 1, 2007.
Housing minister Yvette Cooper says: “Too many sales fall through because of delays and late information, wasting money and causing great stress for buyers and sellers, that’s why we are introducing the packs. We have been working with all parts of industry on the detail and this timetable will give them time to fully prepare.”