The announcement by Communities Secretary, Eric Pickles and Housing Minister Grant Shapps on 20 May suspending Home Information Packs (HIPS) with immediate effect will be warmly welcomed by conveyancing practitioners.
HIPS were initially launched back in 2007 to reduce gazumping. Essentially imposing a requirement on sellers of residential properties in England and Wales to compile a pack of information regarding the property being sold (such as title information and basic conveyancing searches), sellers have been paying higher conveyancing costs as a result of the requirement to provide a HIP on the first day of marketing the property. Many property professionals have criticised the HIP as being unhelpful to buyers and having the potential of destabilising the residential housing market. The highly anticipated suspension will therefore streamline the pre marketing conveyancing process and undoubtedly be well received by the majority of the conveyancing industry.
The Government have also announced that the Energy Performance of Buildings (Certificates and Inspectors) (England & Wales) (Amendment) Regulation 2010 will be laid before Parliament shortly to ensure that sellers continue to obtain Energy Performance Certificates (EPC) and provide the same to the buyer. The Regulation will introduce the following new duty requirements:
• Sellers must ensure that they commission an EPC before marketing the property. An EPC is commissioned when an Energy Assessor is instructed to prepare the EPC and the EPC has either been paid for or an agreement has been in respect of payment.
• Sellers and their agents are to make reasonable efforts to secure an EPC within 28 days of marketing.
• The Seller’s agent must be satisfied that an EPC has been commissioned before commencing marketing.
If you would like to discuss this matter further, please do not hesitate to contact Michelle Knight on either telephone number 0121 214 3550 or email michelle.knight@anthonycollins.com.