Suspension of HIPs is the first step to correcting the Housing Market slump

Following the recent change in Power to the coalition between the Conservatives and the Liberal Democrats, certain changes have begun to appear, outlining certain changes in the system that are having or will have a direct effect on the housing industry and home owners across the UK. Over the last few years and as the recession hit on a global scale the housing market has suffered quite seriously, especially here within the UK. Making important steps in the fragile and uncertain recovery of the UK housing market, the government will be scrapping the necessity for home owners to prepare and provide Home Information Packs (HIP) when choosing to sell or move from their home.

A decision from the new Housing Minister Grant Shapps together with the Communities Secretary Eric Pickles to suspend the required HIP reports for any homeowners wishing to sell their property has taken effect immediately, in many ways relieving home owners who may have faced hefty bills to bring their property up to the latest efficiency levels to validate a successful sale. An action that has been taken out in a bid to help prevent a possible collapse in the very fragile housing market, the news has come of greatly anticipated encouragement to home owners considering selling their property.

The Communities Secretary’s suspension of HIPs that came into effect immediately is the first step in getting the UK’s housing dilemma put right and hopefully soon the government will lobby for an outright abolition. Although such immediate actions might be construed as being possibly too swift and sudden, Mr. Pickles, the Secretary of State has decided to take drastic action to stop or minimise the damage and further decline to the housing market, which is in a dire state at this very moment. The resulting reaction has been a positive one amongst property owners wishing to sell their homes without additional hassles and unnecessary costs.

These Home Information Packs or HIPs as they are more commonly referred to as, are one of the key reasons why the housing market has been held back, causing this unprecedented series of events to unfold. Having to pay large amounts for HIP reports to be assessed and compiled just to be able to place your property on the market has been seen to be a waste of valuable time and money and will no longer be a burden on home owners. Saving on the hundreds of pounds that HIPs can cost, more homeowners will now be in a position to sell their properties, reducing the cost of selling a property and hopefully giving a well needed boost to lifting the housing market out of the slump that has affected the UK for a lengthy period of time now.

Saving a substantial amount over the course of the next decade, UK consumers can be looking at up to £870m that can be injected back into the wider economy. Not only focusing on saving homeowners money by opting for the abolishment of HIPs, both the Housing Minister and the Communities Secretary have stated that the government will be taking important steps to help UK residents and homeowners reduce energy consumption and yearly bills, thus positively seeking better ways to tackle climate change. In addition to improving energy security, efficiency and costs, the government are looking to bring home energy efficiency up to the latest levels in homes all across the UK.

All this will go towards a new political drive for an eco friendly and low carbon impact economy, bringing Great Britain into line with the world leading environmental countries of the world. With HIPs now looking to become obsolete, home owners can think once more about selling their property without an additional layer of regulation to consider. This will allow more buy to let mortgage applicants to purchase available properties to subsequently deal with the rise in tenants wishing to rent accommodation.

Grant Shapps, the UK Housing Minister was quoted in saying the following:

“This is a great example of how this new Government is getting straight down to work by cutting away pointless red-tape that is strangling the market. Rather than shelling out hundreds of pounds for nothing in return we’re stripping away bureaucracy and letting home owners sell their properties.”

Continuing by stating:

“But we’re also showing our commitment to a greener housing market by keeping Energy Performance Certificates and making them more relevant in helping buyers make informed decisions on the energy costs of their new home.”

With an increase in available property, more buy to let landlords will be able to prosper, taking out specialist competitive landlord insurance policies that all in all cause a positive domino effect that will go some ways to helping the UK’s economy thrive again.