The Blog - Archive

January 2009



14/01/09 Home Information Packs - Government consultation

The government is planning to extend the volume of information required in a HIP before a home can go on sale. In particular sellers are to be required to complete a Property Information Questionnaire, which is similar but not the same as the Law Society's Property Information Form, with which sellers may be familiar. The main difference is that the Law Society Form is presently voluntary (although most transactions use it), whereas the Questionnaire will be compulsory, even for transactions where the questions raised are not necessarily relevant. Failure to include the Questionnaire will carry the same sanction as an incomplete Home Information Pack, which for the most part involves a fine imposed by the Local Authority.

Having said this, purchasers so far have shown an obvious reluctance to report sellers and in the interests of assisting our clients to move transactions along, we have been reluctant to advise reporting an incomplete pack to the authorities as we do not see what benefit that provides to the buyer or seller.

The Property Section of the Law Society (representing thousands of property solicitors) has responded to the Government consultation with the view that Home Information Packs have achieved none of their original objectives, but have instead given rise to much additional unproductive work and expense. They also say that Local Searches are often out-of-date, incomplete or of low quality (see our buyer's guide to show how good HIP providers are addressing this issue).

They suggest that the HIP is not looked at or relied upon in practice, save in relation to the Energy Performance Certificate, and only then because it is the one part of a HIP that could be of use in a subsequent sale within 12 months.

Ultimately, the conclusion of the Property Section is that provisions contained in the Housing Act 2004 should be used by the Government to temporarily suspend the requirement to commission a Home Information Pack.

D'Angibau's view, shared by many property professionals, is that given the scant regard Government has shown to those at the coal face of the property market when introducing HIPs in 2007, this looks very unlikely.

by Natalie Clarke

 


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