View more on these topics

Transition period in HIP regulations

Fears that the housing market will experience a surge of activity prior to the introduction of Home Information Packs in June 2007 were alleviated slightly with the inclusion of a transition period in regulations published last week.

HIP regulations include a clause giving owners a five-month period of grace to sell their homes without packs if they go on the market before June 1.

If the properties remain unsold by October 31, owners will have to provide HIPs or risk being fined.

Peter Bruning, chief executive of HomeInformationGroup, says: “This is effectively creating a sell-by date for properties and fuels the likelihood that estate agents will encourage the use of voluntary HIPs for properties marketed before June.

“There are fears that HIPs will cause a surge of properties to come onto the market before the June 1 deadline but estate agents won’t want a glut of properties on their books. As the cost of HIPs is deferred until after completion, sellers should have no reason to rush unless they’ve got something to hide.”

But Nigel Payne, managing director of The Mortgage Business, says the transition period will create a bubble in the market come October, when up to 250,000 properties will require HIPs.

He says: “The market will have to persuade people to get HIPs in those five months or properties will have to come off the market which could result in the market becoming unbalanced.”

Paul Broadhead, deputy director- general of the Association of Home Information Pack Providers, says: “We are disappointed that sellers have to wait 14 days to put their properties on the market if they are unable to get leasehold management information.

“This should only be seven days as it’s not fair to make people wait when everything else in the HIP is ready. It will create a speed divide between freehold HIPs and leasehold ones.”

Recommended

Accord is latest lender on MTE

The lender will now accept electronic agreements in principle and full applications via the MTE. Iain Smith, sales director at Accord, says: “Brokers tell us they don’t want to be restricted to only doing business with us via our website so we are delighted to be joining the MTE.” Introducers submit over 25,000 mortgage transactions […]

BM Solutions updates sub-prime and self-cert sub-prime

BM Solutions has launched a new selection of products across its sub-prime and self-cert sub-prime ranges.Rates in the sub-prime range include: 5.45% three year tracker, available at 90% LTV with free valuation 5.99% two year tracker, available at 90% LTV with free 500 cash backRates in the self-cert sub-prime range include: 5.65% three year tracker, […]

Market Watch

Swaps continued to edge their way down last week.

JEREZ 2006: Lenders branded arrogant for thinking they own client

Speaking at the Mortgage Summit today Kevin Patterson, sales director at Park Row, says it is not acceptable for lenders to think they own the client.He says: We introduced the client and it is not acceptable for the lender to cross-sell, they should be ring-fenced and have no outbound contact with the lender, unless it […]

Newsletter

News and expert analysis straight to your inbox

Sign up