Today's deadline could see some HIP providers fall at the second hurdle

Published 10th Sep 2007

The extension of the Department of Communities and Local Government Home Information Pack scheme to include 3-bedroom properties will test many HIP providers and could leave some floundering. That is the view of Rob Hailstone, CEO of leading HIP supplier Hipag Services.

Says Hailstone, 'Managing HIP production so far has been relatively easy, since most homes in the 4-bed bracket are registered freehold properties.
At Hipag we have had a few unregistered properties and we have still been able to deal with them quickly and efficiently, in fact our very first HIP was for an unregistered farmhouse in Suffolk which we completed in only 6 working days.'

'But the real challenge,' says Hailstone, 'comes from today, when 3-bed properties are included, both because there will be a substantial increase in volume of HIPs and - more importantly - it will include more leasehold property such as flats, and compiling a HIP for a leasehold property is technically and practically much more complex and challenging.'

'Any estate agent ordering a HIP should make sure that their supplier can handle these complex and technically challenging HIPs. Most Hip suppliers should be able to compile a HIP for a registered freehold property but it takes years of experience in conveyancing and some real know-how to compile a HIP for a leasehold property quickly and efficiently.

Problems are now likely to arise, believes Hailstone, because some HIP providers simply do not possess sufficient depth of knowledge or have immediate access to lawyers experienced in the legal subtleties of leasehold properties that would enable them to cope with significant numbers of complex packs. Hence his prediction that ‘Monday’s deadline could see some HIP providers will fall at this latest hurdle.

'Hipag Services has been built with an experienced conveyancer at the helm', he says. 'Many HIP providers have been set up simply as production line businesses but don't have that experience at the core - so when 3-bed properties are included I predict we could see some HIP suppliers floundering’.

‘At the same time, it’s important for all involved in property sales to appreciate that a ‘market-ready’ HIP is not an ‘exchange-ready’ HIP, and that it requires a dedicated and knowledgeable HIP production team such as Hipag’s, to get to the point of exchange as rapidly as possible.’

Source: ' Reuters '

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