New HIP rules begin today says London Mortgage Advice Monday, 6th April 2009

From today marketing a property is now illegal until most of a HIP – complete with an answered Property Information Questionnaire – has been compiled.

For the HIP industry, it marks the end of a long, wearisome and, for some, ruinously expensive journey through a landscape pitted with political U-turns. For opponents, including many agents, this was the day they thought they would never see.

There remains huge confusion as to how local authorities will charge personal search firms for access to information, and whether HIP prices will rise, by how much, and what the variations will be.

There have been repeated calls right up to the last minutefor HIPs to be scrapped during the recession, and for the Government to re-examine their viability once the economy begins to grow again.

There are fragile signs of recovery emerging in the housing market and the Government risks shattering these making sellers provide a HIP before they market their property. Sellers are already cautious in the current market and this could prevent people from testing the waters, and risks a drought of good saleable properties.

Estate agents across the country can see HIPs are simply not delivering and want them abolished. Sellers don’t know what they are and buyers ignore them.

A great deal of the latest controversy has centred around the Property Information Questionnaire, which must be completed by the vendor and included in a HIP.

Perhap however the provision of simple, easy to understand, upfront information regarding a property will enable buyers to make a more informed decision, making them less likely to pull out later in the process. This could also raise consumer awareness and appetite for the HIP, as vendors completing the questionnaire are likely to request to see similarly completed forms for any properties they go on to view.

However, the property cannot be marketed without an up-to-date Index. If there is an EPC, Sale statement, Land Registry office copy of title and plan, and a completed PIQ together with an Index showing these items, then the property can be marketed.