Yes, we're talking about HIPS again!
From 10th September 2007, the much talked about HIPs scheme will be extended to apply to all 3-bed houses!
The controversial scheme, which is supposed to speed up the process of buying/selling a house, will now cover 60% of the housing market.
The packs (which shift most of the burden of gathering information about a property before its sale from the buyer to the seller), contain key information including title deeds, local searches and an energy rating.
As many of you were aware, HIPS were due to come into force for all property sellers in England and Wales on June 1 but was postponed because not enough energy assessors had been trained!(doh!) Scotland is set to get its own version of Hips in 2008.
HIPS are also designed to act as an Energy saving initiative, with each pack containing an Energy Performance Certificate (EPC). According to the Energy Saving Trust, the advice given in these packs can help save you up to £300 a year on your energy bills!.
The Communities Minister Baroness Andrews said enough assessors had now been trained to extend the scheme to 3 bedroom homes from next month. She added that there would be a further announcement on rolling out HIPS and EPCs to other properties "in due course".
"We are now ready to start rolling out HIPs and EPCs to the next part of the market as promised, and improve a home buying and selling process which currently is not working for consumers or the environment," she said.
"HIPs and EPCs can help families to save hundreds of pounds off their fuel bills, and cut a million tonnes of carbon a year."
The packs, which will cost you around £400 and take you about 5 days to complete, have been hugely criticised by various industry bodies!
According to the Royal Institute of Chartered Surveyors (RICS), the initial introduction of the HIPs was followed by a significant drop in the numbers of 4-bed properties coming onto the market.
They said it was because the system was confused and that sellers have been advertising their homes as having 3 bedrooms and a study in a bid to get round the legislation! (clever eh?)
Opposition political parties also questioned the wisdom of expanding the HIPS scheme. The Shadow housing minister Grant Shapps called the plan "pointless red tape", adding that it would lead to extra costs and bureaucracy.
"Pushing ahead with Hips will just make life harder and more expensive for people buying and selling property," he said.
With the scheme set to cover 60% of the housing market, is HIPS still a good idea?
What effect will it have on you and your house this time around?
Home Information Packs: useful or useless?
HIPS: has it cost you £5,000?