First time buyers to benefit most from HIPs

The introduction of Home Information Packs (HIPs) stands to significantly help first time buyers looking to purchase their first home – saving them time and money when they take their first steps onto the housing ladder.

The first time buyer experience is not always easy. In addition to having to save for a deposit, first time buyers also need additional funds to pay for searches, mortgage valuations or surveys, and to cover the cost of the legal work involved in the transaction, adding several extra thousands of pounds to an already expensive first purchase.

Under the current process, offers that are made on a property tend to be largely uninformed. Once an offer has been accepted, money is then spent on surveys or mortgage valuations as well as searches, which can often bring to light information, much further into the process that was not known when the initial offer was made and in some cases, resulting in the buyer withdrawing their offer, after much wasted time and expense.

This can seriously impact first time buyers who then have to save up again for the various fees for an alternative property, only to go through the same process. Further, when the original property is put back on the market, subsequent purchasers (potentially another first time buyer) are faced with paying out again for exactly the same information – increasing overall cost and providing a barrier to home ownership.

However, according to the Association of Home Information Pack Providers (AHIPP), the introduction of Home Information Packs will significantly help to reduce the wasted time and costs currently incurred in the house buying and selling process.

Paul Broadhead, Deputy Director General, AHIPP said: “A fluid influx of first time buyers underpins the house buying market and brings vital buoyancy to the wider UK economy. Over the past 10 years the average age of a first time buyer has increased from 26 to over 31. This is mainly due to the fact that not enough homes are being built which has pushed up house prices and made it more difficult for first time buyers to get on the homeownership ladder.

“The introduction of the HIP will greatly benefit this vulnerable group of soon to be home owners. As the vendor will be responsible for acquiring the HIP, duplicated costs will be eliminated, buyers will be able to make a more informed decision on the purchase from the offset and they will avoid the initial costs of commissioning searches.

“Those sellers who opt to include the voluntary Home Condition Report (HCR) in their pack will be offering additional benefits to their potential buyers, providing extra information on their property which will further speed up the process, saving the potential purchaser even more time and money.

“By bringing the information gathering to the very front of the process, HIPs will significantly help to remove redundant costs, making buying a property more affordable and accessible, particularly for those who are struggling to step onto the ladder.”