What is a HIP?
A Home Information Pack (HIP) is a set of information
about a property which must be made available to
prospective buyers before a property is put up for
sale. More information about Home Information Packs is
available at :
www.homeinformationpacks.gov.uk
Why are HIPs being introduced?
The Government has been eager to find ways to improve
the home buying process. In particular, the Department
for Communities and Local Government (DCLG) wants to
shorten the time it takes to complete a home purchase
and remove practices such as gazumping, which incur
unnecessary costs and frustration for prospective
buyers. It is estimated that £350 million is wasted each
year on property sales which are agreed but then
collapse.
When will HIPs be introduced?
HIPs will start to be introduced on a dry run basis
during the second half of 2006 and will become mandatory
on the 1st June 2007.
With some exceptions, all house
sellers will be required to produce a HIP before placing
their property on the market.
How much will a HIP Cost?
It is anticipated that the cost of producing a HIP will
be between £600 and £700 for a freehold property, while
the cost for a leasehold property will be between £700
and £900.
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