Insurance News Archive
Buy to let insurance policyholders 'say good riddance to HIPs'
Posted by Judith Stevenson
The government's recent decision to suspend home information packs (HIPs), effective from today, was "long overdue", according to one expert.
John Heron, managing director of Paragon Mortgages, which has just re-entered the buy to let market, said the idea was good, but HIPs did not work in practice.
He said: "The decision to suspend HIPs is a welcome move and long overdue. The original policy objective to improve the house purchase process was sound, but HIPs were simply the wrong vehicle."
Mr Heron explained that "just one" of the problems with HIPs was that they discouraged sellers from testing the market because of the upfront cost of building the pack.
He warned landlords, however, to be aware that the requirement of Energy Performance Certificates (EPCs) when marketing properties remains.
Landlords who fail to obtain an EPC when putting houses and flats on the market could be liable to pay a fine and be forced to take the property down from sale.
The suspension comes shortly after it was revealed by the National Landlords' Association that optimism among buy to let insurance policyholders is at its highest level in three years.
21 May 2010
