Three million homeowners plan to move house - they'll all need HIPs

More than three million homeowners are planning to move house in the coming year, according to research by the Alliance & Leicester.

This is in spite of the slowing housing market and credit crunch which have caused so many problems over the last 12 months. The bank says 3.25 million people are planning to move but they realise that conditions are difficult and so many plan to make improvements to their property to increase its value and help it to sell quicker.

A spokesman for Alliance and Leicester said: “Even within the current climate, there are still millions of people who are looking to move and they are doing all they can to get the best price for their property. This trend of improving in order to sell continues, with one in five (19%) homeowners stating that they will be making improvements to their home in the next 12 months in order to add value or increase saleability.”

It is encouraging to see signs of confidence returning to the market. However, many of those planning to sell will find the system has changed since they last moved house. Now all sellers have to provide Home Information Packs (HIPs) for potential buyers.

HIPs have now been with us for a year and they are still dividing opinion as to whether they have helped or hindered the housing market.

They were introduced for four-bedroom homes in August last year. They were extended to three-bedroom homes in September and then to all homes from last December. They’re provided by the seller for the benefit of potential buyers and must include information such as evidence of title, terms of sale and the results of standard searches. There must also be an Energy Performance Certificate (EPC) rating the energy efficiency of the property.

HIPs have proved controversial and many people have questioned their value but whatever view one takes, the fact remains that they are compulsory when selling a home of any size in England and Wales. Failure to provide a HIP for potential buyers could lead to substantial fines.

Please contact us if you would like more information about HIPs or any aspect of buying or selling a house.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.