As part of a series of further improvements to the Home Information Pack (HIP), consumers will receive more helpful information about their future home. A new Property Information Questionnaire (PIQ) in the pack will provide a summary of information about their property in one place, helping buyers make decisions about whether to view a property, and ultimately whether to make an offer.
Other improvements announced to help ensure HIPs reach their full potential include:
Making HIPs available sooner - It is essential buyers are able to see information in the HIP as soon as possible. However, sellers can currently commission and pay for a HIP and then start marketing their property for up to 28 days before the pack is available, meaning some buyers may lose out by making decisions about purchases without benefit of seeing the pack. We are changing the regulations on first day marketing from April 6, to ensure buyers have certainty the HIP will be available as soon as a property comes onto the market, and that sellers get to see the product they are paying for.
Expanding HIP content - Details in PIQ will include flood risk information, gas and electricity safety, service charges, structural damage, and parking arrangements to help buyers make decisions on whether to view and purchase a property. The new PIQ will go alongside other important information in the pack, such as energy performance certificates.
Better service - It is important that both buyers and sellers get a good service from professionals working in the industry; know how the industry is regulated and where to go if they have concerns or complaints. That is why the Government welcomes the Office of Fair Trading conducting a comprehensive study of how the home buying and selling works, looking at competition between service providers and how consumer interests are served.
Continuing to explore more options for consumers - the Government will work with industry to explore ways of making sure consumers have appropriate information about their future property's condition.
Housing Minister Margaret Beckett said: "Home Information Packs are potentially a vital aid to consumers who are seeking to purchase a home, and I am firmly committed to ensuring they work as well as possible. That is why the changes made today will make sure consumers are better protected, better informed and better assisted when buying a home.
"It is essential that all buyers are able to see the HIP as early as possible to ensure they are benefiting from this important information, and that sellers are getting to see the pack they are paying for."
The latest figures on HIPs show that consumers are already benefiting from their introduction. More than 1 million homes now have energy ratings as a result of HIPs, helping home owners to potentially save money on their fuel bills and cut carbon emissions. Greater competition in the property searches market is also leading to reductions in costs with some local authorities reducing their search fees by up to £120.
Previously published independent research by Europe Economics has found HIPs are not impacting on house prices or hindering transactions. The Government fully expects the changes being made today will mean no extra burdens for estate agents, and for example they will still be able to advise potential clients about properties they expect to be coming onto the market. Under the changes made today, from April 6 sellers will need to have the basic HIP before their home is marketed, which is expected to take 3 to 5 days to compile.
RICS Director of External Affairs, Gillian Charlesworth, said: "We have said many times that the HIP has not brought about any benefit for consumers and we are pleased that the Government has recognised how much more can be done if they work with responsible property professionals rather than allowing vested interests to dictate policy.
The challenge now is to ensure that by April we have a HIP that does what the Government claims, and brings genuine benefit to home buyers and sellers".
