 It has been revealed that Home Information Packs (HIPs) have reduced the number of failed conveyancing transactions.
Figures hinted that the packs (which have received much criticism since its introduction in April) have caused the number of failed property transactions it was involved in to reduce by 9%.
The total is dramatically lower than the 23% average failure rate, before the HIPS were launched, published by the government in 2007.
A conveyancing firm supports the findings, after they witnessed the data for more than 10,000 sales were speeded up by HIPs to around six days, with the average time taking to complete a move 50 calendar days.
David Duckworth, partner and head of a residential conveyancing group stated: “As providers of a substantial number of HIPs, they have been a good thing for us.
“I suspect that smaller conveyancing solicitors who largely manufacture HIPs only for their own selling clients do not find them meaningful in terms of contribution to profit.”
Mark Montgomery, commercial director of the firm that found the findings, said: “Obviously the unusual market over the last nine months has also played it’s part, but it is hard to escape the conclusion that overall HIPs have played a major part in reduced transaction times and a reduction in failure rates.
“Paying for a HIP before a property can be marketed undoubtedly excludes some of those sellers who prior to HIPs would simply have been “testing the water”, and this alone will have contributed significantly to the reduction in transaction failure rates.”
Mike Ockenden, director of the Association of HIP Providers, commented: “Failed transactions cause serious problems for large numbers of consumers every year, yet these statistics demonstrate how the information provided by HIPs leads to better informed, smoother transactions.
“Forward-looking conveyancers have used HIPs to their advantage, especially those who have started marketing exchange-ready packs. It’s a positive way forward for solicitors to place themselves at the heart of the conveyancing process.”
However, Richard Barnett, chairman of the Law Society’s conveyancing and land law committee, disagreed with the notion that the packages are helping the property market.
He noted that HIPs were unlikely to have played a significant part in reducing the failure rate. Instead, he put the drop down to the unusual market conditions.
“HIPs have provided no real benefit to solicitors in general as there are so few solicitors producing a significant number of them,” he said.
Property owners to enlist aid of conveyancers
In similar news, homeowners who are looking to sell their property have been urged to seek the help of a conveyancer.
The call comes from the a housing expert, Sam Dunn, who stated that taking professional advice when sorting out the documentation linking to a move can be vital to avoid problems.
Mr Dunn furthered that solicitors can help to protect against errors in documentation which lead to issues such as major building works or road widening being overlooked.
He said: “You would be held responsible if the buyer were to take legal action … A solicitor or licensed conveyancer would at least be covered by a professional negligence insurance policy.”
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