You are here: Home - News -

HIPs scrapped with immediate effect

by: Mortgage Solutions
  • 20/05/2010
  • 0
Communities Secretary Eric Pickles and Housing Minister Grant Shapps have announced that Home Information Packs (HIPs) are to be scrapped with immediate effect in an effort to help the housing market recover.

Pickles has laid an Order suspending HIPs immediately, pending primary legislation for a permanent abolition of the packs. Homeowners will now no longer have to provide the packs when selling their homes.

The Secretary of State has decided to take quick action in order to avoid uncertainty and prevent a slump in the housing market.

The new coalition Government has said HIPs are holding the housing market back, because sellers are having to pay up to hundreds of pounds extra in order to put their house up for sale.

The Government said that suspending HIPs will reduce the cost of selling a home, remove a layer of regulation from the process and provide help to the housing market during the recovery.

In addition, it said consumers will save £870m over ten years, money which can then be spent in the wider economy.

In line with EU law, sellers will still be required to commission an energy performance certificate before marketing their property.

Pickles said: “The expensive and unnecessary Home Information Pack has increased the cost and hassle of selling homes and is stifling a fragile housing market.

“That’s why I am taking emergency action to suspend the HIP, bringing down the cost of selling a home and removing unnecessary regulation from the home buying process.

“This swift and decisive action will send a strong message to the fragile housing market and prevent uncertainty for both home sellers and buyers.

“HIPs are history. This action will encourage sellers back into the market, and help the market as a whole and the economy recover.”

Housing Minister Grant Shapps added: “This is a great example of how this new Government is getting straight down to work by cutting away pointless red-tape that is strangling the market. Rather than shelling out hundreds of pounds for nothing in return we’re stripping away bureaucracy and letting home owners sell their properties.

“But we’re also showing our commitment to a greener housing market by keeping energy performance certificates and making them more relevant in helping buyers make informed decisions on the energy costs of their new home.”

Related Posts

There are 0 Comment(s)

You may also be interested in