National Association of Estate Agents (NAEA) Chief Executive Peter Bolton King responds to the redrafted HIPs regulations issued on 15 June 2006.
5 month period of grace
The redrafted Home Information Packs (HIPs) regulations state that properties put on the market before 1 June 2007 will have a 5 month period of grace where they do not need to have a HIP. However if the property has not sold by 31 October and the owner wishes to continue marketing it, they will be legally required to put a HIP together.
Peter Bolton King, Chief Executive at the NAEA comments: "You could question whether this piece of legislation is really necessary as the housing market will probably self regulate anyway. For example, buyers who wish to purchase a property from June next year will view some properties that have HIPs and others that do not. Buyers are likely to want to compare HIPs for every property they consider. This demand may mean that sellers are forced to pay for HIPs whether or not they are legally required to."
Delay in marketing
The regulations confirm that home-owners will have to wait up to 14 days to market their property while a HIP is put together. Vendors will be acting illegally if they market their property without a HIP.
Peter Bolton King, comments further: "We remain bitterly disappointed that the government has not paid heed to our warning about the impact a delay in marketing will have on the housing market and the economy as a whole. We remain gravely concerned that due to the amount of information required for leasehold properties, few will be able to be marketed before the 14 day period is up."
