HIPs Questions

Nikhil has posed a number of questions about HIPs in a comment on my last post. I claim no special knowledge/expertise in this area and comment only with the benefit of 40 years experience.

I don't understand the term "non compliant personal searches". I recall the start of personal searches decades ago which arose due to the time taken by some local authorities to supply search results. The standard of replies obtained was very patchy and there was no insurance cover for the search companies in case of negligence. As the cost of official searches spiraled it became possible to create a business model for a personal search company to undertake the searches at very little cost in terms of fees paid to the local authority and to charge an appreciably lower fee for the search result and make a profit. Some local authorities tried to put obstacles in the way of these companys by restricting the number of personal searches they could do in a day or restricting to one or two days a week the appointments for personal searches. The search companies managed to, by and large, stop these sorts of practices and there are now many personal search companys in what is now a fairly sophisticated industry. The personal search companys have successfully lobbied the government to allow personal searches in HIPs and they are also attempting to persuade all mortage lenders to accept them. That said, I do not see personal search companys disappearing over time unless the local authorities get their acts together and deal with all search requests electronically in a matter of days and reduce the cost of official searches to put the squeeze on personal search companys.

The cost of HIPs is in the band £300 to £350 for most properties. The price pressure is entirely competition based and as most Sellers have absolutely no interest in doing any more than supplying a compliant HIP I think their sole concern will be price. I expect we will shortly see a much higher demand as we are now 11 days past the September 10 deadline and Agents will not be able much longer to back date the instructions to market the property.

I haven't a clue when the Government will apply HIPs to all properties and assume this will be when they consider there are enough Energy Inspectors. As to the future I would like to see the whole thing go away but it appears there are moves to expand HIPs into some sort of conveyancing package that may reduce the role of solicitors in the process.

I'm off to Dorset next week for another hunt for a retirement property. I need to be "gone" before HIPs and e-conveyancing take off.