Extension to HIPs temporary provisions announced on 8 May 2008

Extension to HIPs temporary provisions announced

Housing Minister Rt Hon Caroline Flint MP announced on 8 May 2008 the extension of the temporary provisions for first day marketing and leasehold requirements in the HIP Regulations from 1 June to 31 December 2008.

First day marketing

The temporary first day marketing provision was introduced after working with industry in order to help smooth the implementation of HIPs and allows a property to be marketed where the HIP has been commissioned and paid for, or arrangement for payment been made, and the documents are expected to arrive within 28 days.

The order laid will extend the temporary provision from 1 June to 31 December 2008.

Leasehold information

The temporary provision requiring HIPs to include the lease only, and to 'authorise' other leasehold documents was introduced in response to concerns about delays and additional costs in obtaining leasehold information. 

Ted Beardsall's assessment of problems with leasehold confirms a number of longstanding issues with the provision and costs of leasehold information, which HIPs have thrown the spotlight on; agrees that the inclusion of all leasehold information before marketing would cause serious difficulties; and recommends further work to resolves them.

The order laid will amend the HIPs Regulations, extending the temporary provision for leasehold requirements until 31 December 2008. In the interim, Ted Beardsall has been asked to convene a working group of industry representatives to develop the options identified in his assessment

The Minister's announcement also includes:

• Developing a new set of standards with industry on what consumers should expect from property professionals in the home buying and selling process; further building on the quality of information in the packs
• Work with the industry to ensure that agents and HIP providers understand and act on the requirement to prepare the HIP as soon as the EPC is produced, so that it is available to potential buyers early in the process
• Develop in partnership with the property professionals, the means for capturing consumer friendly information for inclusion within the HIP, such as property fixtures and fittings, access and boundaries. This will draw on the lessons learnt from our Area Trials.

Read the full text of the Minister's statement.