Home Information Packs or HIPs are set to be scrapped by the new coalition government but Energy Performance Certificates are set to remain.
The much awaited publication of the Coalition Agreement makes it clear that the new Government will scrap HIPs whilst retaining Energy Performance Certificates. A HIP is required under law before a homeowner puts a property on the market
This is bad news for the HIP industry much of which is run by self employed individuals who have paid to train to become Home Inspectors.
This is bad news for the HIP industry much of which is run by self employed individuals who have paid to train to become Home Inspectors.
SPLINTA (Sellers Packs Are Not The Way Forward), founder Nick Salmon called on the new Government for decisive action.
He said: “The end of HIPs has now been clearly signalled and in due course the Pack will be consigned to the dustbin of history and the need for our long campaign will, happily, come to an end.
“It is vital that the abolition is swift and decisive. An announcement that sets a date for ending the Pack some time in the future will cause sellers to hold back from coming to the market. We trust that the housing minister will have the good sense to suspend HIPs at midnight on the date of an announcement and pursue legislative abolition after this event."
He said: “The end of HIPs has now been clearly signalled and in due course the Pack will be consigned to the dustbin of history and the need for our long campaign will, happily, come to an end.
“It is vital that the abolition is swift and decisive. An announcement that sets a date for ending the Pack some time in the future will cause sellers to hold back from coming to the market. We trust that the housing minister will have the good sense to suspend HIPs at midnight on the date of an announcement and pursue legislative abolition after this event."
"Hundreds of home inspectors left their old jobs and invested their own money into the Hips industry, either to pay for their own training or set up their own business," said Jeremy Raj, head of residential property at City law firm Wedlake Bell.
"Many home inspectors are self-employed, so if they do lose their livelihood without any kind of compensation then that would be a severe blow." EPCs are required under European law, so they must be retained.
Many estate agents have been opposed to HIPs as it was seen as another barrier to enter the home-buying market.
The existing legislation gives the housing minister power to suspend HIPs immediately, even if Parliament is not sitting. In practice the likelihood is that primary legislation to abolish HIPs will be part of the Queen’s Speech.
In other changes The Liberal Democrats’ proposed “mansion tax” on properties worth £2 million or more will be abandoned.
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