Homes without HIPs won’t sell

Home owners face the possibility of being unable to sell their homes if they opt to market the property just before Home Information Packs come into force in June 2007.

Government regulations published on Wednesday give owners a five-month transition period to sell their homes without a pack if they go on the market before June.

If the property remains unsold by October 31 2007 it will have to have a pack.

However, hips.co.uk, a subsidiary of Spicerhaart, believes that market forces will mean most sellers will realise the benefits and purchase a pack or face selling a second rate home next to those with a HIP in place.

Stephen Nation, managing director of hips.co.uk, says: “Sellers without HIPs will struggle to sell their homes after June 2007.

“Properties without HIPs, which will contain local authority searches, environmental searches and a Home Condition Report, will stick out like a sore thumb, be viewed with suspicion and consequently left on the shelf.

“Market forces rather than legislation will make certain that properties will be marketed with a pack.”

He adds: “First-time buyers are unlikely to opt for a property that does not have a pack, as the information will be paid for by the seller, saving them money.

“And home owners selling without a pack could find themselves paying out more if they in turn buy a packless property.

“With the regulation details announced, I have no doubt that HIPs will become mandatory in June next year and those in the industry who are not ready will suffer.”