26 October 2009

According to industry magazine Estate Agent Today ( 26 October 2009 ), more and more estate agents are flouting the law on Home Information Packs (HIPs) creating a 'grey market' in house sales.

Other reports claim that agents are routinely marketing houses before even starting to prepare a HIP, and the National Association of Estate Agents have had numerous complaints from its members that unscrupulous agents are bypassing the law.

There is also concern that many HIPs produced are not fully compliant and 5 un-named estate agents in the South-West have been fined £200 each for failing to include Energy Performance Certificates (EPCs) in their HIPs. Eddie Coventry, head of Gloucester Trading Standards, which levied the fines, said: "This is a new area of law which reflects the change in attitude felt by the public towards green issues in general and what each and every one of us can do to contribute towards the problem of climate change.

"By not providing the information required, the decision-making ability of the consumer is restricted. Also, those relatively few estate agents who do not provide this information may be obtaining an advantage over the majority who do comply with the law.”

"In issuing these penalties, we are trying to ensure a fair deal for estate agents and purchasers alike, while sending out a clear message that we will act against activities which do not meet the standards of decent business.”

Lorraine Stratton-Webb, Head of Residential Property at Clough & Willis Solicitors comments, "this report comes as no surprise. We have seen lots of issues and changes in the introduction and implementation of HIPs, stalled deadlines and various changes have confused the general public. We have seen many situations where HIPs have not been fully compliant.

"Some sellers can get frustrated when there is not enough interest in their property and are told by some agents that the HIP they have paid for is non- transferrable if they change agents. The situation has been confused, and to add to the confusion, the Shadow Housing Minister; Grant Shapps has slammed HIPs as 'pointless' and stated 'if we win the election next year, HIPs will be history.' This all comes at a time when the property market is in recovery and people need to re-gain confidence in the market.”

Clough & Willis provide fully compliant HIPs at a cost of £375 & VAT. Clients can then market their homes themselves or choose any estate agent they wish to use. The important point is that the seller can have peace of mind that they have the correct information to make available to potential buyers, and if there is an interested buyer, the sale will not be put in jeopardy by an incorrect or incomplete HIP. For more information, contact the property team free on 0800 083 0815.