BONALLACK & BISHOP SALISBURY SOLICITORS PRESS RELEASE
20th May 2010

HIPS ARE HISTORY

The government’s announcement on Thursday that the controversial HIPs are to be scrapped is good news for sellers, say Salisbury conveyancing solicitors Bonallack and Bishop. The £200-£400 cost of a HIP and the additional hassle involved has deterred many people from selling, impacting on the fragile housing market. The government estimates that scrapping HIPs will save consumers £870m over 10 years.

Tim Bishop, senior partner at the Salisbury law firm, comments, “We welcome the new government's decision to abolish HIPs, which will allow people to put their property on the market with less cost and stress. Not only were HIPs expensive, but they had an expiry date of 6 months, meaning that if you hadn't sold your property within that time the buyer would have to update the searches. Their abolition will remove a lot of the red tape involved in putting a property on the market and hopefully this will help the recovery of the housing market.”

However, it’s not all good news, as buyers will now have to pay for searches that were previously included in the HIP. Under EU law, sellers will also still be required to have an Energy Performance Certificate at a cost of £60 upwards to show how energy efficient their property is.

For more information on what this will mean for the conveyancing market, contact Bonallack and Bishop on 01722 422300 or Bonallack and Bishop Head of Conveyancing Georgina Walters via email.