Home Information Packs are set to be abolished by the new coalition government but speculation on when this will take place may set to deter sellers. The publication of the Coalition Agreement makes it clear that the new Government will scrap HIPs whilst retaining Energy Performance Certificates.
This is bad news for the HIP industry much of which is run by self employed individuals who have paid to train to become Home Inspectors.
"Hundreds of home inspectors left their old jobs and invested their own money into the Hips industry, either to pay for their own training or set up their own business," said Jeremy Raj, head of residential property at City law firm Wedlake Bell.
"Many home inspectors are self-employed, so if they do lose their livelihood without any kind of compensation then that would be a severe blow." EPCs are required under European law, so they must be retained.
Many estate agents have been opposed to HIPs as it was seen as another barrier to enter the home-buying market.
The existing legislation gives the housing minister power to suspend HIPs immediately, even if Parliament is not sitting. In practice the likelihood is that primary legislation to abolish HIPs will be part of the Queen’s Speech.
In other changes The Liberal Democrats’ proposed “mansion tax” on properties worth £2 million or more will be abandoned.