Home Information Packs

[Bagpuss]

I'm guessing you don't know the Scots approach to selling houses?

[Ardesco]

We should introduce the Scottish system if the aim really was to stop underhand practices

What's that ?? Kill the f***er if they don't honour thier verbal contract ???

[Bagpuss]

We should introduce the Scottish system if the aim really was to stop underhand practices

[Fleetwood]

Doesn't British law have the concept of "caveat emptor" anyway?

[davisc02]

I presume these packs come with a valuation that the seller pays for, but how many banks are going to lend their money on someone elses valuation. The buyer will end up having to pay for another valuation anyway.

[Hart-floot]

I wouldn't worry too much, I would guess your average Joe doesn't really know or care about it and will not rush to sell before it comes into force, and then will act all surprised when they find out about it.

One of Mr Brown's more inventive stealth taxes and i'm sure it'll be just like an MOT, i.e. the fact that you have it doesn't mean the house isn't a pile of tulip waiting to fall down, it's just that nobody has realised it yet.

Agree with you, does look like a another Brown stealth tax to me.

But Any new tax always results in change of behaviour as people seek to avoid it , so could have unforseen consequences. I reckon it might mean less property on the market, so supply drops and demand too, as people move less. Not sure what that means for house prices though! neutral?

[Ardesco]

I wouldn't worry too much, I would guess your average Joe doesn't really know or care about it and will not rush to sell before it comes into force, and then will act all surprised when they find out about it.

One of Mr Brown's more inventive stealth taxes and i'm sure it'll be just like an MOT, i.e. the fact that you have it doesn't mean the house isn't a pile of tulip waiting to fall down, it's just that nobody has realised it yet.

[BobTheCrate]

I agree the notion that HIPs will prevent or even help to discourage gazumping appears a ludicrous claim.

In essence though the concept seems fairly to me logical. Just the one 'search' for example. What is an unnecessary expense & effort though is the property health report "based on a professional survey". Because any lender for the potential new owner will always insist on having their own survey carried out anyway. The seller would be shelling out for a survey that no lender would accept or be even remotely interested in.

[Mailman]

IF the Government really did want to stop gazumping then all they have to do is pass a law that makes verbal agreements binding.

Wallah, no more gazumping.

But no, that is far tooooooo simple for this bloody country! Funny thing is, every time I mention this to my english friends they have this "what are you talking bout willis" look on their face

Mailman

[Hart-floot]

Do you think there is any truth in these reports about the proposed Housing pack paralysing the housing market?
Looks like a boom as people try to sell property before its introduced followed by a bust scenario to me!

The Times June 27, 2006

Hips will paralyse the housing market, says Persimmon chief
By Jenny Davey

JOHN WHITE, the executive chairman of Persimmon, one of Britain’s biggest housebuilders, has criticised government plans to introduce Home Information Packs (Hips) and called for their abolition.
Mr White gave warning yesterday that house prices could be forced up once Hips are introduced next year because fewer homes may be put up for sale.

“These Hips are mooted to prevent gazumping and speed up the housebuying process, but they won’t achieve either of these things. They may even slow down the market by reducing the number of properties put up for sale, which would lead to a surge in house prices,” Mr White said.

“I would hope they are not introduced. It would be folly to risk disrupting the housing market and I am not sure what it will achieve.”

The initiative has already come under heavy criticism from the Tories, who claim that Hips are nothing more than a £110 million VAT windfall for the Government.

Michael Gove, Conservative MP and Shadow Minister for Housing and Planning, has railed against Hips as “expensive red tape” for the housing market.

Hips are set to be introduced in June next year and are expected to cost sellers at least £600 to £700. Some estimates put the cost of compiling the packs at as high as £1,000.