Order To Suspend Hips Is Signed

[tonytramcar]

As I understand it there will still be a requirement for an energy performance certificate (EU rules) - I assume this will be prepared by the same people currently preparing HIPs , and therefore nothing changes.

The price of the energy certificate will presumably be adjusted to pick up the shortfall in income caused by not doing the searches, etc.

[Jadoube]

If hips were free would people think they were a good idea?

If they were available easily for every property would they be a good idea?

I think they've been used badly by EA and that the piq and hip have a place in selling houses. I am aware that outside of the HIP industry I'm probably the only one though.

No you're not the only one. The broad idea is a perfectly good one. Its just something the location location element of the Tories think holds down the housing market.

No HIPs may mean folk fly a kite and put the house on the market. No reason to assume they will suddenly decide to accept the offers the more 'serious' sellers were not accepting.

[huw]

Serious sellers aren't put off by HIPs, so I don't see it as a barrier to entry. What you will get with its abolition is an increase in time-wasters and toe-dippers as unmotivated sellers 'test the market'. So I would expect asking prices to rise, but don't expect sale prices to fall. Sadly.

"Serious" sellers are not the only kind that end up selling; more than once I've been a toe-dipper who got seriously motivated when I found the next place that I really wanted, which I would never have done if there'd been a barrier to entry to the selling/buying process in the first place.

Anything that excludes offers or bids -- even marginal ones, or ones that don't result in a transaction -- will hinder the market from establishing its proper level.

[Aside: it would be interesting to know how many HIPS fees have been put on credit cards and rolled over, or added to the mortgage on the following property purchase...]

[huw]

It is against the law to advertise your house for sale without a HIP

with vacant possession, which opened up all kinds of interesting possibilities.

"I'm afraid I'll be leaving my stock of firewood behind, it will be the responsibility of the buyer to dispose of these chattels"

Irrelevant now, but it might have been entertaining approach.

[bomberbrown]

Aside from whether you think HIPs are/were a good or bad idea, there is something that really stinks about all this. Businesses (many of them small, have undoubtedly invested a lot of time and money in the HIP industry since it was recently introduced, and now they're talking of binning them.

HIP businesses will be furious if they are now out of pocket, and quite rightly too.

[piece of paper]

Aside from whether you think HIPs are/were a good or bad idea, there is something that really stinks about all this. Businesses (many of them small, have undoubtedly invested a lot of time and money in the HIP industry since it was recently introduced, and now they're talking of binning them.

HIP businesses will be furious if they are now out of pocket, and quite rightly too.

Quite rightly be furious or quite rightly out of pocket?

p-o-p

[bomberbrown]

Quite rightly be furious or quite rightly out of pocket?

p-o-p

Meh, my bad grandma. They are quite right to be furious about HIPs being binned.

[huw]

Meh, my bad grandma. They are quite right to be furious about HIPs being binned.

I can understand why they're furious, but they should have thought about this risk -- any time you get into a "fiat" business - where customers are directly legislated into existence instead of coming of their own accord -- then you must expect to come a cropper when the legislation changes.

Best stick with tried-and-tested fiat-business-models, like banking

[jonb]

Removing HIP will discourage buyers as there is added uncertainty and increase cost of a survey.

Reduced demand equals.............

It won't because you have to do your own survey anyway.

[Northwest Smith]

Back in 2007 the Tories were saying they would scrap them, along of course with mandatory horse passports

http://news.google.co.uk/archivesearch?pz=1&cf=all&ned=uk&hl=en&q=tories+scrap+hips&cf=all&scoring=n&sugg=d&sa=N&lnav=d2&as_ldate=2007&as_hdate=2007&ldrange=2006%2C2006&hdrange=2008%2C2010

[bomberbrown]

I can understand why they're furious, but they should have thought about this risk -- any time you get into a "fiat" business - where customers are directly legislated into existence instead of coming of their own accord -- then you must expect to come a cropper when the legislation changes.

Best stick with tried-and-tested fiat-business-models, like banking

That's a very valid point and one which I had not considered.

[dipstick]

I'm still not sure if this is going to cover the Home Report in Scotland but have emailed RICS so if I get a response I'll update here.

I would think the cost of the EPC will rise somewhat and not that many people will lose work, although I hope it doesn't rise to the £750 it would cost me to get a Home Report done.

... and that is a barrier to selling in my world.

[Mildura]

Removing HIP will discourage buyers as there is added uncertainty and increase cost of a survey.

Reduced demand equals.............

A HIP does not contain a survey, so this is a separate matter.

[StainlessSteelCat]

As a buyer I thought HIPs were a good idea - and the ones I looked at before buying gave me some useful (but probably not deciding) information including some things I was able to ask the solictors to clarify. The only issue is that didn't go far enough - ie they should contain a proper independent survey of the property and all necessary searches. It is kind of bonkers that potentially a whole score of potential buyers might each get surveys done on a duff property before pulling out.

For such an expensive purchase - buyers get very little information or protection.

[SarahBell]

A HIP does not contain a survey, so this is a separate matter.

is the PIQ separate?

[peakoil]

Odd how when the economic situation is now off the cliff edge that the 'saviour' govt. deals with trivia first

good lateral thinking - are you saying that perhaps there is MORE to this than meets the eye or am I reading between lines that don't exist or are blurred by jack daniels?

[EmpiricalBear]

I'd have thought this forum would be having a mass orgasm over the first point.

Lets put it this way... I need to go to M&S to buy new pants after hearing about this. I don't want to get my hopes up too much, they've been dashed by too many Yvette Cooper robo interviews..

[Laura]

good lateral thinking - are you saying that perhaps there is MORE to this than meets the eye or am I reading between lines that don't exist or are blurred by jack daniels?

I am indeed. Plus I am appalled that this thread has run to 3 pages when my all-important End of the Nig(h) thread has only run to 2

Cheers, 3 glasses of red + my new tart tatin recipe (I make them up as I go) contained rum.

[Game_Over]

HIPS were a control freak state monstrosity IMO.

The basic idea behind them was that you can't sell something without first paying for a government license to do so.

Cars are an expensive purchase for many people, so why not make it illegal to sell a car unless the owner first pays £200 quid for an inspection report.

Or what about electrical goods, they can be fatal if they are faulty so anyone selling any electrical item should have to pay £50 quid for a safety certificate.

Hopefully the next thing to be outlawed will be councils fining old people £1000 quid for putting their bin out on the wrong day / at the wrong time / with the wrong sort of plastic in it.

Thank God we got rid of these Fascists - hopefully for good.

[Bloo Loo]

Odd how when the economic situation is now off the cliff edge that the 'saviour' govt. deals with trivia first

I was thinking that.

hooray HIPS are gone.

meanwhile, food queues lengthen.

[@contradevian]

Odd how when the economic situation is now off the cliff edge that the 'saviour' govt. deals with trivia first

gotta get that property market moving Laura! There is feck all left after all

[mattyfc]

A good move. An extra piece of bureaucracy that was designed to negate the need for a survey, and ended up a horrible useless fudge. Not unexpected since it was in both the parties manifestos I believe and has been for 2 + Years.

I can't believe many people would have invested large amounts of money in this when the Party ahead in the polls for the last 2 years have always said they would abolish it. Rather risky?

Since parliament is not currently convened there is not much the government can do legislation wise currently.... They seem to be doing rather a lot considering.

[ReJoyce]

More supply equals.............

Only if they are motivated (forced) to sell - at least the up front cost of a HIP is a hirdle to the market testers!

regards

J