All properties now need ‘Hips’

14 December 2007

Every property put up for sale now needs a Home Information Pack

An extension to the new selling rule implemented in summer came into force at midnight. This means that all properties put up for sale in England and Wales now need a Home Information Pack (Hip).

Hips were introduced as a means of improving the selling process by cutting the purchasers’ costs and giving them an energy rating for the property.

However, they have been deemed a waste of money by critics and accused of being more of a hindrance than a help by holding back sales.

A spokesman from the Royal Institution of Chartered Surveyors (Rics) said: “Our research shows they knock speculative sellers from the market. Twenty per cent of people put their homes on the market with no initial intention of selling, but then half of them change their minds when they get a good offer.”

He went on to argue that “Hips will put an end to that and shrink the market.”

Sellers pay for the Hips, costing between £300 and £350, which are meant to inform the potential buyer about sale details, proof of ownership and how energy efficient the property is.