Wednesday 14 October 2009

Will the Tories get rid of HIPs?

They say they will, of course, but will they, and will it be a good idea? Will there be mourners, and will we, like the people in the picture standing waiting for a glimpse of Stalin's coffin, both delight in the end of a pointless tyranny and yet miss the passing of opportunities for improvement?

Everyone hates HIPs of course. Sellers resent paying out £350 or so. Buyers dislike being told by their Solicitors that personal searches are unreliable and out of date. Only lawyers read them, and they don't understand the Energy Performance Certificates; or maybe they do but don't want to.

Estate agents keep them hidden and bring them out only when offers have been accepted if they can't avoid it. They don't understand them and fear that in the right hands they might contain inconvenient truths. The potential for using them as a selling aid is vast but unexplored.

Documents are often missing or useless. If a lease has been extended, you'll only get the document which extends the original lease and none of the terms to which is subject. Off title documents, such as restrictive covenants, are never included unless care has been taken in preparing a HIP, which excludes any done by HIP "specialists".

So why should anyone complain at their disappearance? Well, the HIP firms will. They lobbied hard for them to be introduced, and it is hard to believe that Ruth Kelly and Yvette Cooper, who were the architects of this fiaco, were not touched to the very heart by their entreaties. Will their successors be prepared to write off this useless sector of our economy, and the considerable investment that they have foolishly underwritten? Maybe not.

Also it is fair to say that the legal profession, with its customary adaptability, has taken on board the HIP project and uses them, grumbling away, to the best advantage available. More change we don't want either.

So the alternative is to fix them. This could be done:

  1. Ensure that the Searches used are official searches only unless the local authority in question cannot supply these within 21 days.
  2. Provide for a cheap "Official Search update" to allow Buyers to update an Official Local Search within a year for a modest fee - perhaps 25% or 33% of the original fee.
  3. Get rid of the useless and misleading Property Questionnaire.
  4. Ensure that off title documents and other documents which are necessary are included.
  5. Provide for public access to HIPs once done, or at least to EPCs; no more hiding them away.
But what are the chances of this happening?

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