How to smooth the move – sales progression
Property dossiers, upfront information packs, property logbooks are back on the agenda. Lisa Isaacs asks if they could succeed, second time around.
Perhaps that’s why the narrative has changed slightly. The Evening Standard’s Homes & Property supplement recently carried an article with a familiar sentiment. It opened with, “Prospective home sellers hoping to agree a deal by Christmas Day may need to get their home on the market by early November.”
Completion can’t come soon enough
Notice that ‘agree a deal’ has replaced the suggestion that someone could be moved in by a touted deadline. Why? The completion carrot can no longer be dangled. No one can guarantee how long conveyancing will take (and at around 16 weeks to complete, it’s not exactly an encouraging prospect) but we’ve never needed a shorter transaction time than now.
It’s important to note that in 2006, the average time taken to complete on a property was 81 days. In 2022, that number has risen to 153 days, according to our Home Mover’s Report. Nick Huntley, Smoove.
Mortgage offers that expire or are withdrawn during a transaction are fuelling an increase in fall through rates. Further derailing could occur if down-valuing becomes an issue or the interest rate rises again. Speed is of the essence and everyone is willing transactions across the line. If only there was something that could shave weeks off the process. But there was.
A good idea badly executed
In 2006, something called Twitter launched. We played Take That and Westlife on our new iPod Nanos, and we bought extra SD cards for our Sony Cybershot cameras. We also started to worry about a new development on the property horizon – Home Information Packs or HIPs.
We don’t need to retell the story of how HIPs panned out but while the criticism of 2006’s information pack was very audible, the cries for something similar to be introduced now are growing louder by the day.
Delays need addressing
“The need for upfront information has increased with time,” comments Nick Huntley at Smoove. “It’s important to note that in 2006, the average time taken to complete on a property was 81 days. In 2022, that number has risen to 153 days, according to our Home Mover’s Report. This significant increase still begs the question, what can be done to expedite the process?”
Hardly any property professionals are nostalgic about the original HIPs but the principal remains sound. That’s why there’s a tremendous amount of work going on behind the scenes to create a culture of ‘upfront information’ – a HIP mark II, if you like.
In February, the National Trading Standards Estate and Letting Agency Team (NTSELAT) revealed its three-phase project in a bid to increase transparency by way of compulsory disclosure. Part A was launched first, with a set of basic property details becoming mandatory material information at the point of listing, with Parts B and C to follow.
A month later, trade and representative bodies from the legal, surveying, estate agency and property management sectors, including the Conveyancing Association, introduced a new version of the BASPI – the Buyer’s and Seller’s Property Information form.
Property’s answer to a ‘truth bomb’
The BASPI is the brainchild of the Home Buyers and Sellers Group (HBSG) and sets out to be a ‘single source of truth’ available when a property is put on the market. It’s a data set that can be pulled into other platforms to populate forms, such as the TA6 and the property information questionnaire, reducing duplication and doubling up.
“The BASPI already collects data over and above what’s required in NTSELAT’s Parts A,” says Beth Rudolf, the Co-Chair of the Home Buyers and Sellers Group. “The HBSG will undertake an annual review of the BASPI to ensure it keeps up with compulsory requirements, such as when NTSELAT announces further details of its Part B and C, and to reflect the evolving nature of our homes. For example, requests for information on shared ownership, leasehold, spray foam insulation and smart home systems are recent inclusions.”
The Home Buyers and Sellers Group will undertake an annual review of the BASPI to ensure it keeps up with compulsory requirements… to reflect the evolving nature of our homes. Beth Rudolf, Home Buyers & Sellers Group.
Although the BASPI isn’t compulsory, it has Government backing and was a document requested by ministers. There are, however, voices in the industry who would like a change in legislation. “I’m in favour of a refreshed HIP but it’ll only work effectively if it’s made mandatory across the industry,” says Ben Ridgeway at Iamproperty.
Ahead of the upfront curve
It’s not as if suppliers aren’t ready for change. “Iamproperty could easily make a relaunched HIP happen,” adds Ben. “We already provide most of the major component parts of a HIP digitally, minus the searches. Our Movebutler product is constantly being developed to stay ahead of any legislative requirements in the property industry and updates will continue in line with the next stages of the rules.”
I’m in favour of a refreshed HIP but it’ll only work effectively if it’s made mandatory across the industry. Iamproperty could easily make a relaunched HIP happen. Ben Ridgway, Iamproperty.
Iamproperty isn’t the only company gearing up for an all-digital discovery and disclosure process. The Smoove Start platform already undertakes the vital onboarding admin usually completed by the agent, such as ID verification, AML checks, HM Land Registry information and EPC certificates, but Nick Huntley says the platform could easily pivot towards including HIPs as a requirement.
Data and not documents
John Reynolds at Coadjute is keen to avoid past mistakes when developing its own product and when collaborating with others. As part of HBSG’s Technology working group, John’s team has been tasked with developing an open data standard for upfront information. Its focus is on how the information collected in the BASPI is presented, shared and held, on a single platform and source for buyers, sellers, agents, conveyancers, brokers and lenders.
We’re about connecting the existing systems the industry uses rather than asking people to install a new platform. Data created in one system can be interpreted by another. John Reynolds, Coadjute.
“Traditionally, HIPs are provided as PDFs, so different parties needing the information have to copy details from the PDF and re-enter it into the system they are using. You also have no idea where the information has originally come from, so you can’t fully trust it.”
Coadjute uses data instead of documents for its shared infrastructure. This eliminates the need for information to be sent by email (or even post) and the dreaded double-keying of details. Instead, there’s a safe and secure real-time sharing of digital data. “We’re about connecting the existing systems the industry uses rather than asking people to install a new platform or portal. Data created in one system can be interpreted and used by another.”
A spotlight on sellers
While the conveyancing sector is almost united in that a new-look HIP would be advantageous, there are disagreements over who will drive the collation of upfront information. Renu Kiran at ViewMyChain forecasts potential pain points ahead for estate agents if the emphasis is on the seller to act between instruction and listing.
It will help secure more positive outcomes for the sale of properties, minimising fall throughs, reducing delays and cutting two to four weeks off the conveyancing process. Renu Kiran, ViewMyChain.
“For estate agents not utilising technology to support these changes, an increased data gathering responsibility could result in a considerable amount of additional work at the very start of the process, prior to the listing of properties,” observes Renu. “Chasing sellers to obtain completed forms, warranties and certificates, for example.”
Renu does highlight how considerable additional work upfront would certainly prove to be time well spent. “It will help secure more positive outcomes for the sale of their clients’ properties, minimising fall throughs, reducing delays and cutting two to four weeks off the conveyancing process,” she says.
“Similarly, by ensuring that the valuer has the information upfront, post valuation queries can be avoided as they will not need to value assumptions. Post valuation queries can add on average, 21 days to the process.”
Renu adds that ViewMyChain’s data-driven progression tool is ready to help agents whose role may become front-loaded, by ingesting and sharing information pertinent to the sale of a property digitally against a property listing. This enables agents and other users to view key buying and selling milestones.
Conveyancers to the rescue?
In contrast, Peter Joseph at The Moving Hub says agents will have very little to do when it comes to preparing a HIP-type product, with the seller’s conveyancer playing a bigger role early on. He also adds that there will be the same amount of work to do as now but with 80% completed in advance. “The agent is only responsible for listing and selling the property. The seller should appoint their conveyancer, pay for the searches (instead of the buyer), complete the property information forms, undergo AML and ID checks and supply all the guarantees upfront.”
The agent is only responsible for listing and selling the property. The seller should appoint their conveyancer, pay for the searches and complete the property information forms. Peter Joseph, The Moving Hub.
The Moving Hub already gathers most of the above data digitally via its platform, so it’s in a good position to send a fully completed pack to the buyer’s conveyancer on day one of instruction, which Peter estimates could shave two to three weeks off a transaction.
There’s also concern around the cost of a comprehensive information pack – one that would have to be footed by the vendor. “A rebranded HIP is a good idea but with a caveat of what is involved within the pack and the cost,” comments Tom Gilbert at Sort Move. Its Fast-Start digital client onboarding portal is another that’s primed and ready to adapt to industry needs and implement changes quickly. “The previous version of the HIP acted as a barrier for some sellers coming to market and it should not be seen as a ‘cash cow’ for agents,” adds Tom. Ben at iamproperty agrees: “Anything that requires a cost up front from a vendor – searches, for example – will need to be mandated or there’s a risk people will avoid it, even if it’s beneficial.”
Anything that requires a cost up front from a vendor – searches, for example – will need to be mandated or there’s a risk people will avoid it, even if it’s beneficial Tom Gilbert, SortMove.
When asked whether there should be a cap on the price of a future HIP, Beth says the market may have to rely on competition to ensure prices are kept competitive, although this should not come at the compromise of quality. While the upfront cost was often cited for the demise of the original HIP, the general consensus now is that it’s a small price to pay to reduce the conveyancing process.
We’re already half-way to a new HIP
There’s no denying that more upfront information will reduce transactional timeframes. Existing platforms that gather information, coordinate parties and chain check are already mimicking the benefits of a HIP. The MuveFast product from Muve, for example, claims to exchange in 25 working days versus the industry average of 100.
Our MuveFast product obtains as much upfront information as possible, while expediting the search processes. We’re well set up to work with any HIP-style initiative that may come in. David Jabbari, Muve.
“We are very focused on speed,” says Muve’s David Jabarri, “and our MuveFast product obtains as much upfront information as possible, while expediting the search processes. We’re well set up to work with any HIP-style initiative that may come in.”
David does issue a note of caution for those who think a relaunched HIP could be a transactional saving grace. “More upfront information will help the conveyancing process, whether it is similar to the old HIP format or in a new style. People, however, need to recognise that a lack of upfront information is not the sole cause of delays. Things like the enquiry process, searches, leasehold information in non-digital formats and chain issues are major factors.”
Are we gilding the lily?
Carl Brignell from Elite Conveyancing goes as far as saying that a carefully orchestrated HIP may not be necessary or even wanted by home buyers. “The fact of the matter is any decent, modern, law firm will already have the ability to collate most, if not all, of the required upfront legal information both quickly and digitally through their case management systems.”
As an example, the Elite Conveyancing service already onboards a seller, has them complete all of the protocol forms and sends these to the buyer’s solicitor, along with the contract and title documentation, all within 24 hours of instruction.
Buying a home remains a very emotional decision and therefore offering upfront legal information is unlikely to significantly alter fall-through rates. Carl Brignell, Elite Conveyancing.
Carl also questions whether buyers would actually pay any attention to HIP documentation, even if it were to be made available upfront. “Regardless of the advances in technology, buying a home remains a very emotional decision and therefore offering upfront legal information is unlikely to significantly alter fall-through rates. In our experience, fall throughs are more likely to occur as a result of adverse surveys or due to financial issues. There are very few conveyancing issues that cannot be remedied by good lawyers,” adds Carl.
