Digital home information pack provider, Moverly, has found that while just 50% of recent homebuyers have heard of home information packs, 69% believe it would have made the experience of purchasing a property easier had their seller had one.
Home information packs, originally introduced under the Housing Act 2004 and subsequently scrapped by the coalition government in 2010, provide a seller’s essential information and documentation to a buyer during the property purchasing process, such as their EPC, title documents and local authority searches.
Despite their chequered political history, the packs have seen a resurgence in recent times as their online, digital versions address many of the shortcomings of the original initiative.
This proactive approach to selling is thought to dramatically reduce completion times, as well as reducing the chance of a sale collapsing and mandatory digital HIPs could soon be re-introduced as part of government plans. This would be welcome relief for a property industry which continues to struggle with transaction fall-through rates of over 30% and average times from offer to completion of 150 days.
A survey of homebuyers to have purchased within the last year, commissioned by Moverly, found that 44% of homebuyers encountered difficulties when purchasing their last home, with getting a mortgage, finding the right property, challenges with their seller and chain delays and collapses amongst the most common.
However, just 50% stated they had previously heard of home information packs and 69% believe that, had their seller had one sorted in advance, it would have made the process of purchasing a property easier.
A further 74% believe that home information packs are worthwhile as they provide useful information to buyers, with 50% going as far as stating that they would be more likely to purchase a home if the seller had a pre-prepared home information pack.
Finally, 43% believe that home information packs should be made mandatory for all property sales as they provide much needed information, bring a greater degree of transparency and show a higher level of commitment from sellers entering the market.
Moverly co-founder Ed Molyneux, commented, “While controversial in their original form, the property industry has come a long way since the first home information packs were introduced and then scrapped.
The ability to compile and share information digitally has made it far easier to create a worthwhile HIP that can add real value to the transaction process, reducing transaction times and the threat of a sale collapsing.
For buyers, in particular, the property purchasing process can be a daunting one and reintroducing home information packs will help dramatically reduce the time, effort and anxiety of purchasing a home. So it’s hardly surprising that so many believe they are not only helpful, but should be a mandatory requirement.”
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