Private Search Companies to Get Tough with Local Authorites

It seems that one of the inevitable consequences of the new HIP regulations from 6th April this year has caused a backlash from the Private Search Companies.

Since 6th April the search companies have been unable to insure against missing data when compiling HIPs for insertion into Home Information Packs (HIPs). The Private Search Companies have had to make appointments with the Local Authorities to gain access to the extra data on highways and Building Regulation. This has caused delays of at best a couple weeks but at worst many weeks.

CoPSO an organisation of private search companies has threatened to take some Local Authorities to the local government ombudsman or apply for a judicial review if matters do not improve.

The result in practice, is that the preparation of HIPs is in most cases now a multi step process. There is still a concession in the HIP regulations for the Searches to be included within 28 days of order. As no property from 6th April may be marketed without the HIP in place, the reality is that the HIP comes in two parts.

There is an obvious solution in applying for the search directly from the Local Authority rather than through a Private Search Company. You may be lucky with authorities such as Bristol and South Gloucestershire where the response rate is 24 to 48 hours, but Stroud takes much longer.

There is also a cost implication as well. The public still has very little grasp of what constitutes a good or poor HIP, and base their judgment primarily on cost. Private Searches are always cheaper than Local Authority Searches.

The problem scenario may not be too far away where a HIP provider is unable to guarantee that the Local Authority Search will be available within the 28 day concession period. The consequence could be that the Estate Agent might be in breach of the regulations and subject to a fine even where they appear to have followed the regulations to the letter.