Worries about HIP's increase

Grovelawn Financial News 12/02/2008

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Estate agents concerned about HIP effect

Campaigners against Home Information Packs are concerned that the added pressure of preparing the packs as well as the additional cost, could cause a further slowdown in the market.

Up until this June, some vendors have been able to sell their properties without having a full HIP to show prospective buyers. In some cases HIP packs have said to have been 'on order' at the time of putting the property on the market but have not actualy materialised by the time the sale goes through. The cost of HIPs will vary from £300 to £500 and will be a legal requirement for all properties from June 1st. The added cost to home owners is of concern to estate agents as a certain level of sales are generated from prospective sales by home owners testing the market and being seduced by a good offer and taking the sale forward. The extra cost of the pack will be a financial risk that some may not be in a position to make. The pressure group Splinta - Sellers' Pack Law Is Not the Answer - have launched a petition on the 10 Downing Street website for the law to be scrapped. The pack will include serches and an energy performance certificate. Any home on the market for some months will see their search information rendered out of date and lenders will still require their own survey before they agree to offer a mortgage. The Government has said that a survey should take no longer than 7 to 10 days to complete but some opponents say that three weeks is nearer the mark.

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