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Bluecygnet News and Events

Home Information Packs are definitely to be killed off

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Posted 20 May 2010

Speculation of the will-they, won’t-they variety ended with the publication of the Coalition Agreement. It makes it clear that the new Government will scrap HIPs whilst retaining Energy Performance Certificates – the element that is mandatory under EU rules.

The news will come as a hammer blow to the HIP industry, where providers have poured millions into setting up businesses dedicated to the ill-fated venture. However, estate agents are more likely to be dancing in the streets, whilst for mortgage introducers the removal of HIPs is likely to be seen as the taking down of a barrier of entry into the home-buying market.

Lenders were also ambivalent about HIPs, and in particular the acceptability – or otherwise – of personal searches, as opposed to official ones from local authorities. Many buyers’ solicitors have refused to accept searches commissioned by sellers and commissioned their own.

Although details have yet to be released, the likelihood is that primary legislation to abolish HIPs will be part of the Queen’s Speech. However, pending further enactment, the existing legislation gives the housing minister power to suspend HIPs immediately, even if Parliament is not sitting.

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