In mid summer 2007 everyone who wants to sell a property will have to prepare a Home Information Packs before they put it on the market. This article explains what the Packs will have to include what they'll cost - and whether we expect them to work!

Mortgages. Big changes in the buying and selling of houses. Part 2

The Government make the following points:

• The HIP transfers responsibility for obtaining local

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  Mortgages. Big changes in the buying and selling of houses.

  In mid summer 2007 everyone who wants to sell a property will have to prepare a Home Information Packs before they put it on the market. This article explains what the Packs will have to include what they'll cost - and whether we expect them to work!

  Life Insurance News
  searches and a home condition report from the buyer to the seller. But since most sellers are also buyers, the costs will usually be balanced out by corresponding savings and benefits. We agree.
  
• The Government also say that most sellers won't have to pay up front for the pack. We very much doubt that. Someone is going to have to pay and we doubt whether solicitors or estate agents will pay upfront on behalf of the seller. The seller is going to have to fork out as soon as the property is put up for sale. Some commentators predict that this will act as a brake on properties coming to the market. We think that it will dissuade all but the committed sellers - those simply wanting to test the market will probably back off. In practice this will be a good thing, but we agree that it will reduce the amount of property on the market.
  
• The Government believes that market forces will keep down the prices for preparing Home Condition Reports and Home Information Packs. We aren't so confident about this. It very much depends on how estate agents and solicitors adapt the pricing within their fee structures. Expect some very creative pricing, especially from estate agents! It's certainly going to pay you to shop around for a good deal.
  
• Every year around 30% of agreed house sales fall through. The cost? At least £350 million each year! It's the Government's hope that the Home Information Packs will greatly the numbers falling through and avoid much of these wasted costs. We won't argue against that but the National Association of Estate Agents disagree with us.
  
  They think the new Packs will simply shift the existing problems from the middle of the selling process to the beginning. Other commentators believe that HIPs will do nothing to reduce gazumping or indeed, the tricks employed by some of the less reputable estate agents.

Our general view is that if the packs help to identify problems before everyone starts incurring cost and instructing solicitors, then surely that's for the better? We say better to have problems out in the open at the start than stumble upon them half way through the selling process.

We just hope that all these changes in the buying and selling houses don't result in a bureaucratic nightmare. Over 7,500 inspectors will be needed to carry out the new Home Condition Reports and getting them all trained, qualified and registered in time may yet prove to be that fly in the ointment!

Today's Tip
Don't buy direct from a Life Insurance Company until you have received at least two life insurance quotes from a specialist life insurance broker. That way you're bound to get a great deal.

Did you know?
Last year the average Buildings Insurance premium went up by 1% to just over £205 and the average for Contents Insurance premium rose by 2% to £151. But within the overall market we've seen some much bigger rises - one insurer has pushed its premiums up by 6%. That's why is pays to get a range of home insurance quotes - and never accept the first you get.

Did you know?
Secured loans always attract the lowest interest rates. That's because the lender is protecting his risk by taking a legal charge against your property. Then, if there is a default, the lender can call in the loan and, in the final event, sell the property in order to recover the money you owe.

Today's Tip
If you get a quote for life insurance from your bank or even directly from a Life Insurer, you may well find that it's very expensive. Online life insurance brokers tend to provide the cheapest quotes. That's because they widely search the market for you - so their life insurance quotations are likely to be much cheaper.

Did you know?
Secured loans always attract the lowest interest rates. That's because the lender is protecting his risk by taking a legal charge against your property. Then, if there is a default, the lender can call in the loan and, in the final event, sell the property in order to recover the money you owe.