REsidEnTialsales
sellers in the chain and cutting the delays matter of time before they realise that there
The EPC
and potential for problems. is significantly more information available
“People say that buyers should not be to them than ever before. More
process is far
able to withdraw from a purchase once information will hopefully lead to fewer
committed but that can be very damaging assumptions and therefore less stress
from perfect – it’s
to people who have to withdraw for very throughout the conveyancing process.
good reasons. “A few agents are respecting the rules
not very clever
“When a transaction goes on and on for [regarding the introduction of first day
months the chance of changes in marketing] and in general, there is
at dealing with
circumstance – death, unemployment, confusion mixed with denial. Anecdotally,
divorce etc – is high. The solution is simply very few agents seem to be observing the
period properties,
to speed up the process so that a sale can new HIP rules, in force since 6 April 2009.
be made in days or weeks rather than We see for sale boards up when the HIP
for example, and
months. That is what we aim to do.” isn’t yet compliant (when the basic HIP has
been compiled); applicants talk to us about
that needs to be
multiple agency properties where the other
agent has “accidentally” mentioned it,
addressed.’
before the HIP is back.
“So should the Government split the miCHeal o’Flynn, FindaProPerty
EPC from the HIP? The EPC is already
separate in spirit from the HIP, in that May -4.8 per cent, April -4.8 per cent and
EPCs were brought in to comply with March: -4 per cent. In the current climate,
European legislation, whereas HIPs are price falls and the reluctance of buyers to
home-grown. Hopefully, the Government commit, or to access finance, are probably
will listen to the feedback and amend the as significant an inhibiting factor as HIPs.
legislation to make HIPs less onerous. One “The idea of HIPS itself is not a bad one
of the original aims was to simplify the sale – clearly the way property is bought and
process – the current legislation is delaying sold creates a lot of stress and uncertainty
it however; in London, few local authorities – but the implementation was botched.
seem to be the delaying factor in creating a The recent PIQ adds an extra level of
compliant HIP. In their defence, local information which is quite useful,
authorities were not given much advance especially to first-time buyers, though from
Phil Tennant, warning of the required changes. the sellers’ point of view it’s just more
regional direCtor, “We have already had clients trying to bureaucracy to deal with. It may be
HamPtons international
pressurise us to market before the HIP is possible to reform HIPs based on
“HIPS are useful. Whilst the method and complete. Whilst Trading Standards have assessment of what’s worked and what
timing of the introduction of HIPs visited some of our branches, we have yet hasn’t – either that or come up with
legislation has attracted significant to see any enforcement action taken. There reforms that address some of the problems
criticism, for the first time the onus is on is little risk to the seller – the fines and associated with the process of buying and
the vendor to declare exactly what it is that possible Banning Order relate to the agent.” selling property (gazumping).
they are selling. Whilst very few buyers “When HIPs were launched the EPC
have yet cottoned on, it can only be a was the most substantive part of the Pack,
Michael though the recent introduction of PIQs has
Hopefully the
O’Flynn,
added more detail. If you’re going to have a
Content editor,
Pack then it makes sense to put it all
Government
FindaProPerty.Com together. That said, the EPC process is far
from perfect – it’s not every clever at
will listen to
“It’s a little early dealing with period properties, for
to say how the example, and that needs to be addressed.
the feedback
introduction of As for HIPs in general – reform based
first day on consultation with the industry and an
and amend the
marketing honest assessment of what’s worked and
affected the industry. Opponents complain what hasn’t seems the most sensible way
legislation to
that it will inhibit sellers already reluctant forward, rather than outright abolition. If
to enter the market and that may well be the seller uses an agent, it is the agent’s
make HIPs less
the case. Our own figures show a fall in the responsibility to ensure the property is
number of properties on the market since marketed with a HIP and it is the agent
onerous.’
April, but don’t necessarily demonstrate a who will be penalised for failing to do this.”
clear correlation between the April change
and stock levels, which have declined over
What’s your view of HIPs? Join the debate
PHil tennant, HamPtons international the past three months at similar rates:
www.propertydrum.com/articles/hipsjuly
PROPERTYdrum JULY-AUGUST 2009 47
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