FTBs will 'reap HIPs benefits'
Stephen Nation, director of Home Information Packs at Spicerhaart said: “David Cameron is misguided in proposing to axe Home Information Packs in an attempt to help first time buyers. Potential buyers struggling to raise the capital required to get on the property ladder will in fact really stand to benefit from the introduction of HIPs due to the considerable cost savings they will make in upfront costs. Thousands of pounds could also be saved from a reduction in failed transactions as the condition of the property is exposed from the very outset.
“The Home Information Pack, which will contain local authority searches, environmental searches and a home condition report all of which will be paid for by the seller will provide key information on properties, which otherwise buyers would have had to struggle to pay for themselves, and could save first time buyers up to £1,000. With the availability of 100% mortgages, Home Information Packs provide a very real incentive for buyers to return to the market.
“However most importantly, buyers will be better informed prior to putting in an offer on a property as HIPs will highlight any potential problems with the property upfront. The level of transparency will help reduce the number of failed transactions which could save buyers and sellers thousands of pounds.”