HIP'S overturned as predicted

And so it was. As I predicted in this blog earlier in the week, home improvement packs (HIP's) were postponed in the Lords session yesterday.
The packs will however be required for property with 4 or more bedrooms although the legal definition of a 4 bedroom house remains open to interpretation. Agents and sellers will be able to manipulate descriptions to suit if it means an easier of profitable sale. The implementation of HIP's for 4 bedroom propoerties is planned for August 1 2007.
It was suggested that HIP's for smaller properties could still be introduced in phases as more energy assessors qualify.
So there will not be the rush to sell by June 1 as was predicted if the packs had been introduced. At Kinetic Financial Solutions we had begun to get more enquiries from people anxious to sell before the packs became law. It was a concern of many even though the current cost of stamp duty is a far higher than the £300 - £1000 predicted price tag of an information pack.

Last ditch attempt at halting HIP's

I hear that there is to be a last ditch attempt to avoid Home Information Packs (HIP's). It will be the subject of a debate in the House of Lords tomorrow afternoon.

Conservative frontbench spokesman Baroness Hanham will urge the Government to revoke the controversial packs, which will be compulsory from June 1.

At Kinetic Financial Solutions, many of our customers have asked about HIP's for the past year. There is speculation that it will slow the market down significantly. Many of our customers are surprised that there hasn't been more information provided by the Government and that it hasn't been more publicised.

From June 1 it will be illegal to sell a property either through an estate agent, privately, on an internet site or through a newspaper advertisement without first compiling a HIP.

The cost seems to be the biggest issue to our clients. Moving house is costly enough without yet another cost on top. A HIP will cost between £300 to £1,000.

We faced the introduction of HIP's a year or so ago but it all came to nothing, mainly due to a lack of infrastructure, training and information. We will have to see whether this latest attempt comes off. I have heard that there is a legal challenge underway by the Royal Institution of Chartered Surveyors (RICS) who are calling for a delay due to there still being a lack of structure to the programme.

I will post how it affects Kinetic Financial Solutions and our customers. Our thoughts are that it will not affect things as speculated in the press. The property market in Essex where we are based is very buoyant and can stand the cost of the £300 - £1000 expected price tag of a HIP. Nevertheless, it is another cost and is most likely to affect the lower (first time buyer) end of the market.

Welcome to the Kinetic Financial Solutions Blog

Hi there, welcome to the Kinetic Financial Solutions blog.

This blog will be all about the UK mortgage sector and how it affects you. It will give you my thoughts, opinions and expectations about the market based on my role as Founding Director of Kinetic Financial Solutions based in Rayleigh, Essex.

I will also post about my day to day experiences in the mortgage industry. This sector is changing everyday with some radical changes to the industry planned this year such as the controversial home improvement packs (HIPS). Economics obviously massively affects mortgage choice. I will talk first hand about all of this and how it has affected the industry.

At Kinetic Financial Solutions, we strive for unbiased, exceptional customer service. This blog will be the web equivalent of a one to one in one of our offices. Our services include mortgage advice, independent financial advice, overseas propoerty advice and propert management.

We have served hundreds of people throughout Essex including Southend, Westcliff, Leigh on Sea, Hockley, Rochford, Ashingdon, Wickford and Billericay. Our customers come back time and time again wherever they are. We have grown throughout the UK and pride ourselves on our good service reputation and the amount of referrals and repeat consultations that we get.

Should you want to talk to us about your move then see our website for details.


So why should you read this blog?


I have worked in the sector for a number of years. In that time I have learnt best practices and the many pitfalls that await first time buyers or the inexperienced. I founded Kinetic Financial Solutions to give the very best impartial customer service available to such people in what is one of the most important decisions of your life.

If you are interested in an impartial overview of the mortgage and property industry and opinion of moves and news within the sector then this blog is for you.

Russell Parker