Clarke and Son News

While the government has underlined its commitment to Home Information Packs (HIP) by extending the documentation that must now be included, it has delayed several key changes that were due to come into force after 31st December 2008.   The date when a HIP must be in place before a property can be marketed has been delayed until 6th April 2009.  This temporary provision, designed to reduce the potential impact of HIPs, was due to expire at the end of this year.  However, this “First Day Marketing” as it has come to be known, had raised concerns with agents worried about delays in bringing a property to the market and properties may continue to be marketed with merely a HIP being commissioned. In summary: 

• Searches remain a compulsory component of HIPs. A working group will be established to consider how they can be made simpler and more easy to use.
• Transitional insurance cover for missing search information will end on 5th April 2009.
• From 6th April 2009 HIPs must include a Property Information Questionnaire (PIQ)
• The present ‘temporary’ leasehold information provision will be made permanent from 1st January 2009. This means that only a copy of the Lease need appear in the HIP although the PIQ will include additional leasehold information from 6th April 2009
• First day marketing will end on 5th April 2009. Estate agents will still have the 28 days provision for certain information (e.g. searches) that takes longer to obtain
• The regulations still do not impose a ‘drop dead’ date after which all properties on the market require a HIP.
• The Minister is setting up a working group to explore options for making sure that consumers have information about the condition of the home. The aim is “to develop market-led models that can be delivered by existing practitioners, including Home Inspectors”.

The OFT have announced that they will be conducting a comprehensive study of home buying and selling. This will concentrate on:  

• Competition on price and quality between service providers
• The prospects for new entry by, in particular, internet property retailers
• The extent to which consumer interests are protected by the existing regulatory framework

The study may also cover the relationships between estate agents, and mortgage brokers, surveyors, solicitors and other professional advisors.

If you would like advice on HIPs or any aspect of buying or selling your home, please contact  Paul Cowdery or Tel: 01256 320 555

The Government has announced a new Homeowner Mortgage Support Scheme (the Scheme) which is intended to allow those who suffer a “significant and temporary” loss of income to defer part of the interest payments on their mortgage for up to two years.The Government will guarantee the deferred interest payments in return for co-operation from the banks. The deferred interest payments will be rolled up and added to the principal sum which the borrower will pay off when their circumstances improve.The Government hopes to introduce the Scheme early in 2009.

If you would like advice on HIPs or any aspect of buying or selling your home, please contact  Paul Cowdery or Tel: 01256 320 555

The revised HIP Regulations, covering amongst other things First Day Marketing provisions, the new Property Information Questionnaire and the continued use of Personal Searches in HIPs are due to be announced within the next week. We will provide a full breakdown as to how the Regulations will affect buyers and sellers as soon as we can after their publication.

If you would like advice on HIPs or any aspect of buying or selling your home, please contact  Paul Cowdery or Tel: 01256 320 555

Commenting on the choices facing the MPC at its December 2008 meeting next Thursday, David Kern, Chief Economist at theBritish Chambers of Commerce (BCC), said:

“Following the disappointing reaction to the PBR it is critical for the MPC to persevere with aggressive interest rate cuts. To alleviate the worse consequences of the recession, we urge the MPC to cut rates by a full one per cent on Thursday, to two per cent. Additional cuts will be needed in the early months of the New Year, probably to one per cent.”

Paul Cowdery, Conveyancing Partner, comments:

“Although interest rate reductions are unlikely to produce any immediate recovery in the housing market, the hope is that more competitive and realistic mortgage products will come on line sooner to fuel the property market.  This process may well be assisted by the “nationalisation” of the Royal Bank of Scotland (RBS).”