- EDINBURGH, SCOTLAND, February 16, 2006 - When HIPs become law in England and Wales on 1 June 2007, house sellers will have to produce information packs for buyers, at a cost of around 600 plus VAT. (Office of the Deputy Prime Minister news release, 17 November 2005.) Ministers say that HIPs will cut the number of sales which fall through, thereby speeding up the home buying and selling system.
) is concerned that the introduction of HIPs will initially slow down the current home buying system further.
Roger Milbourn, Director of MIAS Ltd said: "I believe that the implementation of HIPs will initially slow down the housing market, as in order to put a property up for sale, sellers will have more work to do and will need to find at least 600, in order to compile a pack. HIPs will impose extra costs and red tape in an already complex market. They could have serious repercussions on the buying and selling process - and, consequently, on house prices."
MIAS Ltd also sounded another note of caution.
Roger Milbourn said: "Finding enough people to carry out the 1.5 million surveys currently done each year may prove extremely difficult. The Office for the Deputy Prime Minister tells us that as of November 2005, 1700 people were undergoing training for the Home Inspector qualification - but that the number of inspectors expected to be required for June 2007 is between 5000 and 7400. (Ibid.)"
MIAS Ltd hopes the Government will ensure that sufficient Home Inspectors have been trained by the time HIPs become mandatory next summer.
Commenting, Alistair Good, Managing Director of MIAS, said: "The implementation of HIPs represents a major change to the process of buying and selling property. It is vital that ministers examine the potential impact the packs will have on the market, in order to provide assurance to the industry and the public.
"We await the results of the Government's "dry run" with HIPs later in the year with interest."
For further information, please contact:
MIAS Ltd 0845 833 0878
Managing Director: Alistair Good
Director: Roger Milbourn
Notes to Editor:
The Mortgage and Insurance Advisory Service (MIAS Ltd) is a firm of impartial mortgage advisers, offering a comprehensive service to clients seeking residential and commercial mortgages and mortgage protection.
Founded in 2002, MIAS has quickly gained a reputation for providing straightforward, impartial mortgage advice, matching clients up with some of the most competitive deals around. MIAS's experienced brokers have expertise in all sectors of the mortgage market and look after the whole transaction from beginning to end, making the process as smooth and as headache-free as possible.
For further information on the services MIAS offers, please visit http://www.mias-ltd.co.uk
Company Registration No: 4578793
Consumer Credit License No: 529227
Financial Services Authority No: 301532
MIAS Ltd is authorised and regulated by the Financial Services Authority. You can check this on the FSA's Register by visiting the FSA's website www.fsa.gov.uk/register/
or by contacting the FSA on 0845 606 1234.
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