HIPs will save £1m 'daily'
HIPs will save £1m 'daily'
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Friday, 26, May 2006 08:29
The introduction of home information packs (HIPs) will save up to £1 million every day due to less property deals collapsing, a new report claims.
A new publication from consumers rights organisation Which? praises HIPs ahead of their phasing in next year, explaining that significant amounts of money and "incalculable costs in terms of time" will be saved.
Research by the consumer group suggests that two-fifths of property transactions fall through because of the unexpected discovery of faults or urgent repairs within houses, wasting £350 million annually. Which? also claims that one-third of all housing deals end up being cancelled.
But the introduction of HIPs will go someway to addressing the problem of new buyers receiving "nasty" shocks when they move into their homes, according to Kate Faulkner, the author of the report.
"The HIP ought to make buying a property a more efficient process and reduce the astonishing failure rate that means a third of accepted offers come to nothing in the end," she said.
Which? predicts that the final price of individual HIPs is going to be about £600 - lower than most estimates - but argues that part of this fee is taken up by replacing conveyancing fees, with the majority of conveyancer's work made obsolete.
Ms Faulkner concluded: "Fewer failed transactions means less wasted money. So they're going to save people cash as well as time and effort."
HIPs are a comprehensive set of legal documents and details regarding individual houses and will include a specialised home inspector survey. Every property seller in England and Wales will be required to provide prospective buyers with HIPs when they are gradually phased in from June 1st 2007 onwards.