On 20th May 2010, the new coalition government suspended home information packs. No longer is it a legal requirement to have one of these in place in order to market a property, although the government has retained the Energy Performance Certificate element. Whilst marketing can begin before one of these has been carried out, Sellers are obliged at the very least to have had one commissioned beforehand.
So what impact will this have on the property market?
There is some speculation as to the impact this move will have on the already fragile property market. Some say that it will encourage "chancers" to enter the market who are merely testing the water on prices. Yet then again, with more properties coming on to the market, there will be more to accommodate the already growing demand from Buyers. One thing for sure, is that the property market has surged since May 20th. It has been reported that the number of properties up for sale in the UK has increased by as much as a third. Sellers are more willing to enter the market now, knowing that it will not cost them anything up front to do so. What impact this will have on property prices is not yet clear. However it is apparent that this move may have come at a really good time for the economy, providing a much needed injection of life into the already tenuous property market.
What will happen to the Home Information Packs already in circulation?
As Sellers are no longer legally obliged to provide these to Buyers, they can refuse to do so. However, given that the packs have already been paid for and produced, it might be possible just to make the best out of a bad situation. For example, Sellers could use them as a marketing incentive or alternatively they might like to try selling on the searches contained within the packs to future Buyers and recouping some of their losses. If you have any queries in this regard, please contact a member of our property team who would be happy to answer your questions.
How long is an Energy Performance Certificate valid for?
Since May 20th, the government has relaxed the rules surrounding these. They are now valid for 10 years. In theory it is therefore possible that if a property is sold on several times during this period, the same Certificate could be used each time.
What will this mean for Sellers?
That's simple, freedom to market their properties quickly and a saving of up to £500. For those who already find themselves in financial difficulty, this will be a welcome move, lifting the barrier between them and the possibility of selling their properties and moving on.
Ward Gethin are committed to providing a first class service to its clients and can offer a bespoke Conveyancing facility.
Should you have any questions surrounding the aftermath of the HIP suspension, or wish to discuss your upcoming sale, please do not hesitate to call one of our Property team members who would be happy to help on 01553 660033.
