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Hipps - Who Will They Hurt Most?

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Graham Norwood - property journalist from the Sunday Times notes;

'each pack will contain searches, survey, log of title deeds, building consents and planning permissions'

'7400 inspectors are required'

'so far fewer than 600 have qualified but fasttrack courses are introduced in 2006'.

BACK TO ME TALKING - who are these inspectors and crucially, who are they replacing?

Seems to me that Solicitors will be circumvented by HIPPS as much of the important work will have been done. So, I can envisage lowish fee pack providers also offering simple 'listing' services coupled with streamlined 'tyding of the edges' legal services under one roof.

Are E/As and conveyancing Lawyers worried - I would be?

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Graham Norwood - property journalist from the Sunday Times notes;

'each pack will contain searches, survey, log of title deeds, building consents and planning permissions'

'7400 inspectors are required'

'so far fewer than 600 have qualified but fasttrack courses are introduced in 2006'.

BACK TO ME TALKING - who are these inspectors and crucially, who are they replacing?

Seems to me that Solicitors will be circumvented by HIPPS as much of the important work will have been done. So, I can envisage lowish fee pack providers also offering simple 'listing' services coupled with streamlined 'tyding of the edges' legal services under one roof.

Are E/As and conveyancing Lawyers worried - I would be?

Are you for real? This post suggests to me that contrary to lots of previous posts that you've never purchased a property.

You're a fantasist.

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Are you for real? This post suggests to me that contrary to lots of previous posts that you've never purchased a property.

You're a fantasist.

Hmmm, ok so you think Solicitors will be able to charge the same level of fees, even though someone else has already done the important work?

E/As will also struggle as the 'added value' that the public percieve will be diminished by virtue of the fact that many previous deal - killers (such as search or survey issues) will have already been resolved and neatly to hand in the pack, thereby lessening the demand for 'negotiatiors'.

You sound like the sort that predicted TV would never take - off. :rolleyes:

Edited by dogbox

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Graham Norwood - property journalist from the Sunday Times notes;

'each pack will contain searches, survey, log of title deeds, building consents and planning permissions'

'7400 inspectors are required'

'so far fewer than 600 have qualified but fasttrack courses are introduced in 2006'.

BACK TO ME TALKING - who are these inspectors and crucially, who are they replacing?

Seems to me that Solicitors will be circumvented by HIPPS as much of the important work will have been done. So, I can envisage lowish fee pack providers also offering simple 'listing' services coupled with streamlined 'tyding of the edges' legal services under one roof.

Are E/As and conveyancing Lawyers worried - I would be?

As you say, the initial work of a solicitor will already have been done - obtaining the title, sending the property information forms to the vendor, collating them with the title to prepare the information pack to the buyer's solicitor. When HIPs come in all a solicitor will need to do is create the draft contract and send it to the buyer's solicitor.

The buyer's solicitor will not have to apply and wait for searches - they will be in the HIP. So a bit of haggling over the contract - to justify their fee - and it's a done deal.

Where HIPs fall down is the fact that the information is time sensitive. If the searches are more than 3 months old they will have to be done again. And, of course the Home Condition report - which all those inspectors are needed for. The Home Condition Report has nothing to do with the value of the property - so the vendor will pay for the Home Condition Report as part of the HIP and the buyer will pay for a building society surveyor to do a valuation. The buyer and lender may not trust the Home Condition Report as it was paid for by the vendor and will be done by someone whose sole experience may be a fast track course. So the Home Condition Inspectors are not replacing anyone - they are providing an allegedly independent report on the condition (including energy efficiency) of the property.

At the moment a lot of (mad) people borrow a fortune to buy something they don't even have a proper survey done on. The Home Condition Report is likely to be a warts and all description of the property and I think is going to cause havoc in the property market.

Imagine a vendor engages an estate agent and, between them, they get a HIP done and the Home Condition Report says things like:

'The central heating system appears to be at least 10 years old and may not be working as efficiently as it should.'

'The pointing, whilst not defective, is showing signs of breaking down on the surface which may be allowing rain penetration to the brickwork. In due course this may lead to spalling of the brickwork.'

'The ground floor is timber and without lifting the fitted carpets it is not possible to determine whether the ventilation between the floor is adequate to prevent timber decay.'

All this stuff is normally glossed over in the mad rush to buy the next property up the ladder - most people don't have a full structural survey done and those that do often use the results to beat down the price.

I can see a lot of fun and games when HIPs come in with vendors thinking 'Boy, I've got to get the place perfect or the buyers will knock me 50k'.

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Hmmm, ok so you think Solicitors will be able to charge the same level of fees, even though someone else has already done the important work?

E/As will also struggle as the 'added value' that the public percieve will be diminished by virtue of the fact that many previous deal - killers (such as search or survey issues) will have already been resolved and neatly to hand in the pack, thereby lessening the demand for 'negotiatiors'.

You sound like the sort that predicted TV would never take - off. :rolleyes:

As a buyer do you believe everything a seller, who in all likelihood you've never met before, tells you?

Do you not think that for one of the biggest purchases in most peoples lives they'll carry on verifying all the important stuff themselves. Solicitors will lap up the chance to find a few discrepancies between what the seller claims and what they, the solicitor, subsequently finds out. More money for the savvy solicitors is my theory.

I note you clumsily avoided the question about whether you've actually bought property yourself. So I'll assume the answer is no!

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I can see a lot of fun and games when HIPs come in with vendors thinking 'Boy, I've got to get the place perfect or the buyers will knock me 50k'.

But surely that means that the timing of the implementation of this is perfect.

Just as the crash is occuring the real quality of property will become clear and as prices fall back down to earth (naturally) there is a lovely piece of new work that estate agents can blame.

Well yes it was worth £150,000 in 2005 (in those days when pigs flew) but its now only worth £70,000 because as this sheet of paper states there is dodgy pointing, dodgy boiler and a potentially leaking roof.

Edited by eek

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As a buyer do you believe everything a seller, who in all likelihood you've never met before, tells you?

Do you not think that for one of the biggest purchases in most peoples lives they'll carry on verifying all the important stuff themselves. Solicitors will lap up the chance to find a few discrepancies between what the seller claims and what they, the solicitor, subsequently finds out. More money for the savvy solicitors is my theory.

I note you clumsily avoided the question about whether you've actually bought property yourself. So I'll assume the answer is no!

So you predict no change and no impact upon the income of Solicitors and E/As. I think the opposite, time will tell.

Oh and yes Ive bought 7 properties in the UK in my time, although Im not entirely sure why you want to know this vital nugget. The latest completed today, my new business premisses upon which I had absolute minimal Solicitor involvement, didnt even bother with a search. In return for my expediency I got a nice fat discount. No doubt the bears would loose 3 stones in weight if they undertook such a 'risky' venture.

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Estate agent worried about HIP "Armageddon" - and they call us doom - mongers! :D

Armageddon is just 18 months away!

Sir,

I had the unfortunate experience of attending a recent HIP Conference in London and I came away from the event no wiser and certainly no more confident than when I arrived.

For a start, the speakers on the platform found themselves contradicted by the civil servant from the Office of the Deputy Prime Minister on the implementation of the Housing Act and when he opened his speech, it was clear that the ODPM has a hidden agenda.

HIPs are more to do with providing the tools for private sales and avoiding estate agents — the ODPM spokeman’s quote, not mine.

What of the future for chartered surveyors? Pretty grim.

Their monopoly will disappear overnight and competition from ‘qualified’ home inspectors will eventually take over in one form or another.

To add to the gloom of despair, the effect that the HIP will have on the UK economy is still to be debated.

If fewer houses are sold, then a knock-on effect to the manufacturing industry, retailers and other affiliated businesses linked to the property market, together with reduced revenue from Stamp Duty, could well have dire consequences upon the economy.

Has the Chancellor calculated the likely damage that the Deputy Prime Minister will wreak upon his Budget forecast?

I am not normally an alarmist but Armageddon is just 18 months away!

PAUL SHERRIFF,

Sherriff Mountford,

High Street,

Burnham,

Buckinghamshire.

http://www.estateagencynews.co.uk/letters/...ters_1205a.html

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ive looked into getting the ABBE diploma which is the one that allows you to fufill the role of home inspection report. this is what i have found.

The course in total is 1 year with most done at home study with part in house training.

the course is mainly open to people already with knowledge of the building industry, ie inspectors, surveyors, site agents, builders ect.

Cost for the course is 7000 pounds which covers all examination fees ect.

I think this is one of they course where you need in at the start to make good money out of, becuase once it gets up and running everyone and his dog will want to do it and destroy any value in it.

i think each estate agents will employ on piece work a inspector, also building societies, auction houses and the general public.

personally i think you would be better sticking the 7k into shares of the company that is gonna become national with this, as someone surely will.building societies and insurance companies ect like to deal with one company for everything, this is why they phone drain doctor at twice the rates of a local plumber, its the reasons franchises can be worth taken on.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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