Is the home information pack beginning to lose its stigma? At one time, not too long ago the HIP found itself on the end of much derision and it was not unusual to pick a paper up or turn on the TV only to find some so called expert making mention of it in the same breath as commenting on the downfall of the economy.
Grant Shapps, the Shadow Housing Minister, often saw the need when speaking to declare the HIP as being solely responsible for the slowdown in the property market, as well as creating an unnecessary cost burden for the home owner. The National Association of Estate Agents was also making similar declarations. Added to this were the alarmist headlines in papers such as the Daily Mail pronouncing the HIP as a great example of consumer exploitation. In fact there was so much anti-hip propaganda it is of no surprise that home owner began to see and believe that the HIP had no place within the home selling and buying process.
So what has changed? What has led to an apparent shift towards retaining rather than ‘scrapping’ the HIP? There are in addition to the undoubted fact people have now nearly three years after their introduction become accustomed to the practice of obtaining a HIP, a few recent developments that have led to a significant shift in perception.
Not too long ago we saw the publication of the OFT survey on home buying in which the HIP received coverage and the concluding view expressed was that, on balance, the HIP was worthy of retention. This was then followed by a major change in the way in which the NAEA sees the HIP, with an open admission from the NAEA that the HIP regulations were playing an important part in providing consumer protection!
The other major change has been the clear improvement in market conditions. There is no doubt property is beginning to come to market and transactions are going through quicker. Now there is volume in the market the agents and the sellers and buyers are starting to see and reap the benefits of the HIP. There are less speculative sellers meaning that transactions are not collapsing. The buyers lawyer is getting his or hands on the legal documents and information that much earlier, leading to quicker and less stressful transactions.
There is also a growing sense of concern as to what will be left if the HIP goes. Grant Shapps has said he will scrap the HIP but has failed to come up with any proposal for replacement. At the time when the Conservative Party was enjoying a larger lead in the polls there was no need to do anything other than to continually knock the HIP. Now with all indications pointing to a hung parliament or even a Labour Government surely the time must be right for Shapps to re-think his policy on HIPs and to begin engaging with the HIP industry and other stakeholders.
The HIP may, generally speaking, be a minor issue and one that may not influence the electorate a great deal, however this may not prove to be the case when one looks towards the slim margins that exist in some of the key seats around the Country. Higher selling costs, more stressful transactions and undoubted unemployment may influence enough people to vote against Shapps’ misguided policy.
Grant Shapps, the Shadow Housing Minister, often saw the need when speaking to declare the HIP as being solely responsible for the slowdown in the property market, as well as creating an unnecessary cost burden for the home owner. The National Association of Estate Agents was also making similar declarations. Added to this were the alarmist headlines in papers such as the Daily Mail pronouncing the HIP as a great example of consumer exploitation. In fact there was so much anti-hip propaganda it is of no surprise that home owner began to see and believe that the HIP had no place within the home selling and buying process.
So what has changed? What has led to an apparent shift towards retaining rather than ‘scrapping’ the HIP? There are in addition to the undoubted fact people have now nearly three years after their introduction become accustomed to the practice of obtaining a HIP, a few recent developments that have led to a significant shift in perception.
Not too long ago we saw the publication of the OFT survey on home buying in which the HIP received coverage and the concluding view expressed was that, on balance, the HIP was worthy of retention. This was then followed by a major change in the way in which the NAEA sees the HIP, with an open admission from the NAEA that the HIP regulations were playing an important part in providing consumer protection!
The other major change has been the clear improvement in market conditions. There is no doubt property is beginning to come to market and transactions are going through quicker. Now there is volume in the market the agents and the sellers and buyers are starting to see and reap the benefits of the HIP. There are less speculative sellers meaning that transactions are not collapsing. The buyers lawyer is getting his or hands on the legal documents and information that much earlier, leading to quicker and less stressful transactions.
There is also a growing sense of concern as to what will be left if the HIP goes. Grant Shapps has said he will scrap the HIP but has failed to come up with any proposal for replacement. At the time when the Conservative Party was enjoying a larger lead in the polls there was no need to do anything other than to continually knock the HIP. Now with all indications pointing to a hung parliament or even a Labour Government surely the time must be right for Shapps to re-think his policy on HIPs and to begin engaging with the HIP industry and other stakeholders.
The HIP may, generally speaking, be a minor issue and one that may not influence the electorate a great deal, however this may not prove to be the case when one looks towards the slim margins that exist in some of the key seats around the Country. Higher selling costs, more stressful transactions and undoubted unemployment may influence enough people to vote against Shapps’ misguided policy.
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