Government regulations give owners a five month “transition period” to sell their homes without a pack if they go on the market before June 2007. If the property remains unsold by 31 October 2007 it will have to have a pack. However, hips.co.uk, a subsidiary of Spicerhaart, believes that market forces will mean most sellers will realise the benefits and purchase a pack or face selling a 'second rate' home next to those with a HIP in place.
Stephen Nation, managing director of hips.co.uk, said: “Sellers without HIPs will struggle to sell their homes after June 2007. Properties without HIPs, which will contain local authority searches, environmental searches and a Home Condition Report, will stick out like a sore thumb, be viewed with suspicion and consequently left on the shelf. Market forces rather than legislation will make certain that properties will be marketed with a pack.
“First-time buyers are unlikely to opt for a property that does not have a pack, as the information will be paid for by the seller saving them money. And homeowners selling without a pack could find themselves paying out more if they in turn buy a pack-less property."
Nation added: “With the regulation details announced today, I have no doubt that HIPs will become mandatory in June next year and those in the industry who are not ready will suffer.
“Both buyers and sellers with more information upfront will be able to make a better informed and much faster decision, as HIPs will highlight any potential problems with the property upfront. The level of transparency will help reduce the number of failed transactions which could save buyers and sellers thousands of pounds."
