HIPs having adverse effect on housing market
September 29, 2007
The controversial Home Information Packs, or HIPs, are causing problems in the housing markets according to many experts. These packs are affecting the number of properties that are coming onto the market as well as affecting asking prices on properties.
HIPs were introduced to cover homes of four bedrooms or more, but were recently rolled out to include three bed homes, and will eventually cover all homes that are put up for sale. The packs have been designed to make the process of home selling and purchasing more streamlined, but many say that it is complicating matter and making it more difficult.
With more trained assessors now available the government is hoping to roll out this scheme to all properties as soon as possible, but for now the scheme covers just three bedroom houses upwards. The Home Information Packs contain a range of information including property deeds, energy information, valuation details, and more. However, many experts state that the packs are proving too expensive for sellers, resulting in a reduction of three and four bedroom houses coming onto the market. Another report claims that HIPs are partly responsible for an average fall of £6000 on asking prices in August.
A spokesperson from the Royal Institute of Chartered Surveyors said that their figures show the impact that HIPs have had on housing market, stating: “Our members are saying that compared with August 2006, instructions to sell four or more bedroom houses is down by about 60%.” However, according to another industry professional: “The market has been steady as it usually is during July and August and I don’t think that the implementation of the Hips has made any significant difference. Whether people want to move or not is determined by so many other more important factors.”
Alan Wright
29th September 2007
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