HIPs: Like it or not HIPs are coming

The government's home information pack (HIP) legislation is creating much controversy within the industry, with anti-HIP supporters arguing that the packs will not improve the home selling and buying process. With less than a year before its introduction, stakeholders would better focus on embracing the opportunities arising from the HIP initiative.

With the introduction of the new HIP regime on June 1, 2007, the seller will be required to produce a home information pack providing key information on the property under offer before putting up their property for sale. By providing key information at the start to potential buyers before they make an offer, HIPs are expected to reduce sales transactions failures that may have resulted from flaws identified by surveys conducted at a late stage; cut out time wasters and speed up the house buying and selling process.

Home Information Packs are creating commotion within the industry

Undoubtedly one of the biggest and most complex legislative changes to take place in the housing market, HIPs are understandably creating considerable commotion within the industry. One professional group affected by the new regime is estate agents. Indeed, agents will not be able to adopt a "first day marketing" approach when the scheme comes live since they will have to wait for the pack to be ready before starting to market the property - a major reason behind the strong resistance shown by the National Association of Estate Agents, authors of a study insisting that HIPs will not dramatically cut the rate of collapsed sales.

However, while the Home Information Pack (HIP) legislation may not be perfect - for instance, it is creating more red tape and the pack is expensive - it is aiming to improve the house selling and buying process. We will only know of the likely effects, whether positive or negative, when the regime is tested.

With less than a year before the introduction of the HIP regime, it is in the interests of stakeholders to make the most of the HIP initiative. Indeed, there are various opportunities arising from the HIP regime such as offering HIP services to other businesses or sellers, which are up for grabs.

As the government is re-affirming its intention of going forward with HIPs and the implementation process is underway, the quicker the anti-HIP supporters understand that there is no way to get around the legislation, the better it will be for them.