Lenders Show Support For Home Information Pack

Lenders Show Support for Home Information Pack
Buying and selling a​ property doesn’t always go according to​ plan .​
One in​ four transactions collapse before contracts are exchanged, wasting time and money.
The government is​ concerned that many house purchases fall through because of​ the time it​ takes to​ get to​ completion .​
Where there is​ a​ chain of​ buyers and sellers, just one person pulling out can ruin a​ whole series of​ purchases, costing all those involved money, time and patience .​
Government research suggests that £350 million is​ wasted by consumers every year as​ a​ result of​ aborted housing transactions .​
The government's solution to​ this problem is​ the introduction of​ Home Information Packs (HIPs).
From 1st Juke 2018 all home owners in​ England and Wales will need to​ arrange for a​ Home Information Pack to​ be prepared before putting their homes up for sale .​
The idea is​ that property sellers will produce a​ Home Information Pack (HIP) for potential buyers to​ see before they make an​ offer .​
HIP will not be required for:
• properties in​ Scotland and Northern Ireland
• private sales where the property is​ not offered on the open market
• non-residential property
• homes held on a​ lease of​ less than 21 years
• portfolios of​ residential property, etc.
Home Information Packs will provide important information to​ prospective purchasers at​ the very start of​ their interest in​ a​ new home, giving increased transparency on key issues and meaning any offer to​ purchase is​ based on an​ informed decision .​
Currently, much of​ this essential information only comes to​ light when an​ offer has been made and accepted .​
In the meantime, buyers are negotiating in​ the dark and are often wasting money on legal fees, searches and surveys.
The pack includes:
• evidence of​ title
• Replies to​ standard enquiries (whether you are aware of​ any problems with the property)
• Copies of​ any planning, listed building and building regulations, consents and approvals
• Copies of​ warranties and guarantees for new properties
• Any guarantees for work that has been carried out on the property
• A draft contract
• A house condition report based on a​ professional structural survey of​ the property
Some estate agents are sceptical of​ the plans .​
President of​ the National Association of​ Estate Agents, Julie Westby says: It imposes extra costs and red tape in​ an​ already complex market .​
It could have serious repercussions on housing transactions and consequently on house prices .​
Also, introduction of​ the HIP could slow the housing market as​ each seller will have to​ find at​ least £600 to​ compile a​ pack .​
All lenders recognise the need to​ improve the conveyance process, and there is​ widespread support for the e-conveyance initiative by the Land Registry .​
However, lenders have had mixed views about HIPs since the proposals were first developed .​
Members are not persuaded at​ this stage that the perceived consumer benefits will be achieved.
The Council of​ Mortgage Lender’s head of​ policy Jackie Bennett said: Lenders are generally not anti-Hip in​ principle .​
It is​ the practicalities, the government’s expectations, and the possible unintended consequences that cause them concern.
In a​ clear sign of​ the change in​ attitudes towards HIPs, the Council of​ Mortgage Lenders (CML) has published a​ new report showing that lenders are happy to​ support the use of​ Home Information Packs .​
According to​ a​ CML survey, two thirds of​ lenders intend to​ provide packs.

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