Agents warned: Home Information Packs are coming

With the Government's final regulations being published in parliament this week it is clear Home Information Packs will be mandatory on June 1.

All agents will have to comply with the duties created by the new law in order to protect the consumer.

Agents that have dealings with a Home Information Pack must become a member of The Ombudsman for Estate Agents.

Bill McClintock, chairman of the OEA, said: "The Government has started its consumer awareness marketing campaign in the national press. The public are gradually becoming more and more informed about the packs and the need for sellers to have one before they commence the sale of their homes.

"We are here to protect the consumer from any incompetence or malpractice by agents. Consequently sellers should inquire that any agent they use to sell their property is a signed-up member of the Redress Scheme. It costs only £100 a year per office for an agent to be a full member of the scheme so they have absolutely no excuse not to sign up to our Code of Conduct and give their clients the protection they deserve."

What the HIP must contain:

An index of contents A sale statement (summarising the terms of sale) Evidence of title Standard searches (local authority enquiries plus a drainage and water search) An Energy Performance Certificate Commonhold information (where applicable) Leasehold information (where applicable)

Optional documents include:

A Home Condition Report Guarantees and warranties Other searches relevant to the particular area (mining/flooding)

Paul Broadhead, Deputy Director General AHIPP (The Association of Home Information Pack Providers), has also spoken out over the issue.

Mr Broadhead says he aims to dispel rumours and mistruths about Home Information Packs.

He said: "The suggestion that there will not be enough energy assessors on the 1st June is totally untrue, and totally unsubstantiated. The current training courses for DEAs are bulging at the seams and a second tranche of trained energy assessors are expected to come though post June 1st - under no circumstances will we not have enough energy assessors."

 "The suggestion, by some misinformed individuals, that HIPs will cost £1,000 is a total fabrication. HIPs will cost in the region of £300 - £500 and this will include the cost of an Energy Performance Certificate (EPC). The consumer will not be faced with paying this upfront. A number of options will be available to consumers including interest free deferred payments and the option to incorporate into the overall Estate Agency Services. Nobody will be forced down any single payment route.

"Market forces will keep the cost of packs competitive with multiple suppliers competing for business. Consumers and Estate Agents should only purchase HIPs from HIP Code compliant suppliers to ensure the maximum consumer protection. In addition, any agent that has any involvement with a HIP must become a member of the statutory redress scheme which will offer considerable additional protection for the consumer."

"A number of agents have recently launched campaigns, urging consumers to put their home on the market early, in an attempt to avoid the need for a HIP. If consumers feel the need to rush to market their homes in an attempt to avoid the HIP this may cause a slight distortion in the market during the early summer months. However, July and August are traditionally quieter periods and over the year as a whole this will have no impact at all."

Mr Broadhead added: "The recent suggestions surrounding energy assessor numbers and the predicted market impact of HIPs are ridiculous. They are nothing more than an irresponsible attempt by those who oppose HIPs to scare consumers and impair this much needed reform of the house buying and selling process for their own or political gain."

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