Home Information Packs (HIPs) are to be scrapped with immediate effect, the coalition Government announced today (20/05/2010).
The unpopular packs which contained information required before a seller could put their home on the market was “pointless red-tape” that was “strangling the housing market”, the Housing Minister Grant Shapps said.
HIPs were brought into effect in August 2007 in England and Wales for properties with four or more bedrooms, before being gradually introduced across the rest of the market.
Homeowners and campaigners criticised the Labour policy, claiming that it had failed to help buyers and discouraged people from putting their property up for sale when the market needed a boost.
The Conservatives and Liberal Democrats pledged in their manifestos and in their coalition agreement to get rid of HIPs.
The hope is that the demise of HIPs will boost the housing market recovery and, in turn, create further employment in the property sector.
Energy Performance Certificates, which rate the energy efficiency of a home with A to G ratings, will be retained and must be produced by the seller within 28 days of putting a home on the market.
The burden of paying for searches from local authorities and search companies will now fall on house buyers, which could add to costs for first-time buyers.
