HIP, HIP, Goodbye!

The use of Home Information Packs (HIPs) has been scrapped today.

The controversial packs were introduced by the Labour Government in 2007, and became mandatory for anyone marketing their property for sale.

HIPs contained property information such as searches, a floor plan and an Energy Performance Certificate (EPC) rating the energy efficiency of a home. The EPC will remain a requirement for property vendors, in accordance with EU law.

HIPs were aimed at speeding up the property transaction process. However, their many critics claimed that HIPs simply represented an additional expense for property sellers, were ignored by the vast majority of buyers, and did nothing to expedite the selling process.

Both the Conservatives and the Lib Dems had promised to get rid of HIPS if they came to power.

Communities Secretary Eric Pickles said yesterday:

“The expensive and unnecessary Home Information Pack has increased the cost and hassle of selling homes and is stifling a fragile housing market.

“That’s why I am taking emerging action to suspend the HIP, bringing down the cost of selling a home and removing unnecessary regulation from the home buying process,” he said.

Estate agents were among those who welcomed the announcement.

“The National Association of Estate Agents has long campaigned for HIPs to be scrapped. They have failed to benefit home buyers and actively discouraged sellers,” said chief executive Peter Bolton King.

Property experts said the government should use this opportunity to improve the homebuying process further.

“There is now the opportunity to start again with a clean slate and come up with innovative proposals to reform the system,” said Gillian Charlesworth of the Royal Institution of Chartered Surveyors.

Liam Bailey of Knight Frank suggested the Government should follow French and Portuguese examples where the EPC is only required when terms have been agreed on sales - not prior to marketing. “Only if this happens will the full damaging legacy of HIPs have been removed,” he said.