Almost 50% of homebuyers think home information packs should be mandatory
Recent research has revealed that although only 50% of recent homebuyers are familiar with home information packs (HIPs), 69% of them believe that having one would have made their property purchasing experience easier. HIPs were initially introduced in the Housing Act 2004 but were later abolished by the coalition government in 2010. These packs provide crucial information and documents from sellers to buyers during the property purchase process, such as Energy Performance Certificates (EPCs), title documents, and local authority searches.
Despite their controversial history, HIPs have gained renewed interest as their digital versions address many of the shortcomings of the original initiative. This new approach to selling is expected to significantly reduce completion times and decrease the likelihood of a sale falling through. The government is considering reintroducing mandatory digital HIPs as part of its plans, which would be welcomed by the property industry facing high transaction fall-through rates and long average times from offer to completion.
A survey commissioned by Moverly, targeting homebuyers who made a purchase within the last year, revealed that 44% of respondents encountered difficulties during their home purchase, including challenges related to mortgage acquisition, finding the right property, seller-related issues, and chain delays or collapses.
However, only 50% of the respondents reported prior knowledge of home information packs, while 69% believed that having a pre-prepared HIP from their seller would have facilitated the property purchase process. Additionally, 74% considered HIPs to be worthwhile, as they provide useful information to buyers, and 50% indicated that they would be more inclined to purchase a home if the seller had a pre-prepared HIP.
Furthermore, 43% of respondents supported the idea of making home information packs mandatory for all property sales, citing the benefits of essential information provision, increased transparency, and a higher level of commitment from sellers entering the market.
Ed Molyneux, co-founder of Moverly, commented on the findings, noting that the property industry has made significant progress since the introduction and subsequent removal of the original home information packs. With the ability to compile and share information digitally, creating a valuable HIP has become easier, benefiting the transaction process by reducing time, effort, and anxiety associated with home purchases. Given the positive impact they can have, it is not surprising that many individuals believe HIPs are not only helpful but should be mandatory.
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