Rat and Mouse
Thu
26
Jul
TheHipExpchange on avoiding a mishap, misHIP, whatever

Jeez, I can't believe I'm still printing speculative HIPs news... like 20 months isn't enough time for the Government to get their story straight. Anyway, HIPs are finally (probably) arriving - in a mutated, stupid, inbred version - on Wednesday. And still people continue to debate methods of HIP-avoidance. Here's Henry Pryor - founder of TheHipExchange - blowing smoke into the eyes of those who think they can go HIP-less:

I can describe my fourth bedroom as a study.

The RICS suggested doing this might save you the cost of the HIP but according to the property website Primemove.com, the difference between a three bedroom and a four bedroom house in London is about £160,000.

I can take out an advert before the end of July and even if I don't market my house until next year, it will be exempt.

The transition period is for property on the market now but will extend to any property being marketed in 2008

The fine if you don't have a HIP is only £200 so why bother?

Trading Standards officers have the power to refer an estate agent who fails to comply to the Office of Fair Trading who can take steps to ban an estate agent from practicing.

So long as I order one then I am covered. I can cancel it if I decide not sell.

An order made for a HIP cannot be cancelled unless previously agreed with the Pack provider. It seems unlikely that such an offer would be acceptable and the provider would successful sue to recover the cost though the Small Claims Court.

If I sell the house myself I don't need a HIP.

The Act defines 'the responsible person' as either the homeowner or his agent if one is instructed.

No one is going to bother checking if every property has had an HIP.

By recording the details of every property advertised on the Internet in the same way that property aggregators like Primemove.com and then cross referencing them with the central register of Energy Performance Certificates it is possible to identify any qualifying property that requires a HIP and by extension which ones have not. The HiP Exchange offers a compliance service based on this model to larger solicitors and estate agents who want the reassurance that they are not missing any properties.

Okay, then, Mister... what about this?!! The Rat and Mouse has been made privy to some very interesting email correspondence between a UK search agent and somebody within the DCLG. Presumably - the search agents asks - since we're paid by, and acting for, the purchaser, we're not technically "estate agents". The DCLG grey-suit concurs. So - continues the search agent - if we place the details of a property against our database of clients and find a match... and are then paid by the purchaser... we can complete the transaction HIP-free. The civil servant gives them the nod. So - there you (appear to) have it. HIPs... good for search agents.

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Comments

Quote: "if we place the details of a property against our database..."

Would the fact that property details are available not constitute 'marketing'? Surely if property details are known to be circulating then there is an inferred notion that the property is for sale.

And why should search agents be bothered? Their client (the purchaser) would not pay for a HIP anyway.

Posted by David at July 27, 2007 2:48 PM

Comments

Good points. But the email correspondence certainly suggests that making a search agent aware that your property might be available won't be construed as marketing. "Why should search agents be bothered?" I guess because they need houses to show their clients. I'm positive that the search agent who contacted me with the aforementioned emails did so in order to encourage potential vendors to contact search agents first. I suppose a vendor must balance a potential HIPs saving against negotiating a price with somebody being paid by the purchaser.

Posted by Ben at the Rat and Mouse at July 27, 2007 2:59 PM

Comments

I spent most of last year looking at this scenario. My conclusions were that as soon as a property becomes publicly available then the property will require a HIP.

The only way a search agency may be able to get around this is if they physically knock on doors (cold-calling) asking homeowners to sell.

www.tickeverybox.com

Posted by David at July 30, 2007 11:20 AM


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