Hips Second Phase Sparks New Criticism...
11 September 2007
The second phase of the controversial government Home Information Pack (Hip) scheme starts today, amid further criticism from industry bodies.
From Monday, all three bedroom homes sold on the UK property market will be subject to a Hip, outlining a building's energy efficiency and detailing other important legal issues such as land deeds.
However, the National Association of Estate Agents (NAEA) has claimed that the second phase of the launch will have a negative effect on the three bedroom home market.
Indeed, over 60 per cent of agents reported decreases in the number of larger properties on their books - with homeowners staying out of the market to avoid Hips cited as the main reason for the decrease.
Peter Bolton King, chief executive at the NAEA, said: "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 next few months will prove crucial in seeing whether Hips are going to cause the sort of problems we feared."
Meanwhile, Louise Cuming, head of mortgages at price comparison site moneysupermarket.com, said people will try alternative ways of marketing their homes in order to avoid having to pay the costs associated with a Hip.
"Anyone searching for a three bedroom home might have to look much harder, with a sudden glut of adverts for two bedroom houses with a large study," she said.
