Government's new regulation requiring sellers to provide costly information to buyers results in supply shortage, say estate agents
Home information Packs (HIPs) may now be a reality, but many politicians and property professionals want their introduction reversed.
After a six-month delay, it became compulsory for all vendors to provide buyers with a HIP from December 14 last year. The introduction had been planned for June 1, but was phased in from August because not enough staff could be recruited to run the scheme.
The packs are designed to speed up sales transactions and reduce costs for buyers. Vendors are required to provide HIPs to potential purchasers at the start of the home-buying process. Buyers previously had to spend time and money collecting the information themselves from different sources.
A HIP must contain the sales statement, local authority searches and title deeds. It also must have an Energy Performance Certificate, which gives information on the property's energy efficiency and advice on how its CO2 emissions and fuel bills can be cut. Sellers can voluntarily include a surveyor's survey of the property called a Home Condition Report.
Most vendors must pay at least GBP350 (HK$5,443) to have a HIP prepared.
Opposition to the scheme is widespread and its future is in doubt. The Royal Institution of Chartered Surveyors (RICS) had asked for a judicial review to stop its introduction, and the Conservative Party wants to scrap the packs if it gets into power at the next election because it considers them costly and bureaucratic.