Latest HIP regulations could boost confidence as buyers will be able to act on facts rather than gut instinct.
New Home Information Pack (HIP) regulations from April 6 will put an end to the use of insurance to cover missing data in personal searches.
HIPs have always included standard local authority searches but the practice of insuring against missing information will be prohibited.
Accredited HIP provider Dave Holmes of Holmes Inspections has been providing HIPs to Chiswick homeowners since their launch last year. “This will definitely mean the end of non-compliant bucket shop HIP providers, which is beneficial to buyers and sellers alike.”
Previously it was possible for unscrupulous search agents to omit information that was ‘available but at an extra cost’ on the basis that they could insure themselves against the consequences of any omission. The new regulations have closed this loophole.
It is still advisable not to pick a HIP provider solely on price says Holmes. “As always you get what you pay for, and second-rate suppliers can jeopardise a chain due to delays and omissions. Vendors may find themselves facing duplicate costs further down the line.”
Primed for Chiswick properties
Holmes Inspections is already primed to implement the new regulations, on properties for sale in W4, W6, W12, W3, TW8 and TW9, on behalf of Oliver Finn. However with only days to go the industry still has no idea what the different local authorities will be charging for the necessary searches and information.
“As usual Communities and Local Government authorities have not all released their costs for searches although their pricing looks set to rise,” says Holmes.
It is likely that there will be a variation in costs levied by councils and also a difference in the information made available. Depending on the authority, you could end up with a Personal Search costing nearly the same as an Official one.
While the new rules state that searches in HIPs must be full and complete, and not underwritten by insurance, some answers will still be unavailable. Search agents can only include information that is made available to them by the relevant local authority. Information about Roads & Highways for instance, is sometimes included but sometimes costs extra.
On average, a HIP can currently be provided to a seller within five days of instructing an estate agent, and the new legislation may lead to this process being delayed. Therefore many sellers should prepare themselves for some frustrations.
However with the excellent customer liaison and communication provided by Oliver Finn and Holmes Inspections, there will be no unnecessary delays.
