Homeowners prepare to ‘hide’ bedroom

Now that the advent of home information packs (Hips) has become a reality, many homeowners in Britain are preparing to exploit a loophole in the scheme.

Because Hips only applies to houses with three bedrooms or more, many homeowners plan to call their third bedroom an office or something else in order to get out of having to buy a pack, Abbey has discovered.

A full 8.5 million people with houses that have three or more bedrooms admitted that they would utilise this loophole.

Nici Audhlam-Gardiner, head of mortgages at Abbey, said: “While Hips might seem a hassle we think it would pay in the long run to play it a straight rather than going through this loophole.

“By remarketing your home as a two-bedroom house with a study, you’ll become invisible to thousands of potential buyers that are searching online.”

Many of those looking to buy may see the price advertised for a supposed two-bedroom house and think it overpriced, said Ms Audhlam-Gardiner.

Hips became compulsory for houses with three bedrooms at the beginning of this month.

Tags: hips, Non-profit organization, Foreclosure, Home Information Pack, pack, Audhlam, house, head of mortgages

First-time buyers going it alone

First-time buyers are becoming less dependent on their parents when it comes to getting onto the property ladder.

That is according to new research from Abbey, which shows that the number of us expecting help from our parents to put down a deposit has fallen.

Just 9.7 per cent of first-time buyers expect any financial help at all from their parents when it comes to purchasing a property, compared to 23 per cent six months ago.

Despite the move away from parents when it comes to securing your first mortgage, many people (45 per cent – unchanged in six months) still expect help from their parents when it comes to moving into their new home.

“The decline in the number of potential homeowners relying on their parents is a positive indication that first-time buyers are finding alternative ways of funding their homes,” said Nici Audhlam-Gardiner, head of mortgages at Abbey.

“However, despite the decline parents still have a large role to play. With one in ten people still requiring parental help to buy and over half still needing help on moving day, it’s not just the children that feel the financial burden of buying a home.”

The survey also found that the ideal home for those taking their first steps onto the property ladder is a country cottage, followed by a townhouse and a penthouse.

Tags: decline parents, Audhlam, number, deposit, home, indication