Home Information Packs became mandatory for all three bedroom house sales today, but the National Association of Estate Agents has warned HIPs will adversely affect the three bedroom home market. Click here to let us know your thoughts on the new site However, other organisations say the roll out of HIPs for three bedroom properties is confirmation of the schemes validity and the Government’s commitment to HIPs. An NAEA survey, carried out following the launch of HIPs on 1 August, found almost two thirds of NAEA members reported a drop in the number of larger homes on their books, with an average decrease of 37%.
The results of the survey suggest most homeowners are staying out of the market to avoid HIPs. Peter Bolton King, chief executive of the NAEA, comments: “Our concerns have always been that the introduction of HIPs would lead to a lack of supply following implementation. This does indeed seem to be the case with four bedroom homes and is now likely to be replicated in the three bedroom homes market.
” The average price being paid for a HIP is Ј350, according to the NAEA, indicating most homes are being sold without the home condition report, which the NAEA says is the only useful part of the pack besides the energy performance certificate. However, Easier2Move, an online conveyancer, says its own research reveals estate agents have had little trouble with HIPs and the vast majority are ready for their implementation. “The expansion of the scheme builds on the success we have already seen in the first month of HIP usage.
In research we conducted amongst estate agents, we found very few had experienced any problems with the initial roll out of these packs and the majority were ready for their arrival”, says Karen Babington, sales and marketing director at Easier2Move. Babington says the only area which has been problematic is customers who are reluctant to pay for their HIP, which she puts down to a lack of payment options offered by some providers. The Government is expected to announce the launch of HIPs for homes smaller than three bedrooms in the next few weeks.
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