House prices rise by 3.2%, says financial experts

The average asking price for property has risen by 3.2 per cent as estate agents test the market, claim property experts.

According to property website Rightmove, competition between estate agents is expected to be fiercer than last year with only 132,000 properties on the market compared with 144,000 during this time in 2007.

The firm adds that prices have been virtually static for much of the past six months, and this is a trend expected to continue through 2008.

Miles Shipside, commercial director of Rightmove, said: “It’s not the start of another price boom, but the interest rate cuts have no doubt given some sellers headier hopes.”

He added that these are likely to prove to be unwarranted given the high level of existing property that is already on the market and the amount of time that it has been there.

A slower market was cited as one reason for this drop in new listings, but also the introduction in December of home information packs (Hips) which might have put some speculative sellers off say Rightmove.

Tags: slower market, hips, United Kingdom, average asking price, headier, Ask price, property website rightmove

Three bed homes to be covered by HIPs

The controversial Home Information Packs, also known simply as HIPs, have so far been used on properties that are being sold and have four or more bedrooms.

These HIPs were designed to cover all homes being sold, but lack of training of relevant assessors meant that there were not enough resources to cover this, and as a result only houses with four or more bedrooms were covered when the scheme was finally launched earlier this year. However, the government promised that as further staff members were trained the scheme would be rolled out to cover all properties.

It seems as though the government is quickly ensuring that it keeps its word, after an earlier announcement this week that HIPs would now also cover three bedroom homes. The plan is to continue rolling out the scheme to smaller properties as time goes on a more staff are trained, until eventually all homes will be covered with the Home Information Packs. These packs will provide a range of details such as energy information, property deeds, and more.

The HIPs have been at the centre of controversy for some months, with many experts stating that they will have a negative impact on the housing market, and that they will prove too costly for sellers. Although these packs provide information for the buyer of a property, and can save them time and money, they will cost the seller, and could prove troublesome for sellers according to some professionals.

According to the Communities Minister Baroness Andrews: ‘We are now ready to start rolling out Hips and EPCs to the next part of the market as promised, and improve the home buying and selling process which currently is not working for consumers or the environment.’

Tom Smith
1st October 2007

Tags: property, home, government, information, hips, packs

HIPs In Place For Three Bedrooms

Estate agents are warning that the new Home Information Packs (HIPs) are going to cause a shortage of larger properties on the market. One agency reported that the number of large homes on offer for sale is down by 40% over the last 12 months, and experts in the industry are blaming the packs for the problems. Each pack costs around £500, and they have been compulsory for homes with four bedrooms and more since 1 August.

The Government says that the packs will shorten the time of the buying process, but agents claim that they are actually putting off sellers and pushing up prices as they try to cover costs. Each pack must include an energy performance certificate and standard searches.

Estate agency Chancellors said that it had seen a fall of 42% in the number of large homes being brought to market since 1 August when compared directly with the same period in 2006.

Many sellers are unhappy with the process. Some say that it verges on interrogation, with questions on construction dates, central heating, loft insulation and the use of low-energy light bulbs, and multiple photographs throughout the property. Some people have seen the process through to sale, but many more have not. The Royal Institution of Chartered Surveyors (RICS) said that 53% of its members reported a drop in the number of four bedroom homes put on the market since 1 August, compared with the same period last year – worse even than the Chancellors figure. This fall has not been in line with expectations, despite rising interest rates, stock market turmoil and the credit squeeze, and HIPs are being blamed.

Now, since Monday 10 September, HIPs are required for homes with three bedrooms, despite warnings from those within the housing market.

Jeremy Leaf, housing spokesman for RICS, is unhappy with the way the government has handled the implementation. He said: “I have never known legislation so badly introduced. Homeowners clearly have no faith in the packs or the policy, which have only brought more bureaucracy and mass uncertainty to an already paralysed market. Before they are heaped on the rest of homeowners, we need to see some evidence-based justification that this policy benefits consumers. At the moment it doesn’t exist.”

Nick Salmon, an estate agent and founder of the campaign group Splinta (Seller’s Pack Law is not the Answer), said: “I cannot think of any [benefits consumers have seen from HIPs]. There is a great deal of anger among homeowners who do not see the point of these packs and consider them another stealth tax. HIPs have simply heaped more expense at the wrong end of the transaction, and sellers have nothing but contempt for the new law.” The Government stands to boost its coffers by the VAT applied to the Packs.

There are still loopholes in the law. Sellers can avoid a HIP by 1) converting a bedroom to a study, 2) cancelling a pack after it has been ordered, as it only need to be ordered, not actually purchased, 3) pay the £200 fine for not having a HIP – much cheaper than the £500 a HIP costs. In fact, getting caught is unlikely as trading standards officials admit they don’t have the resources to enforce the packs.

Mr Salmon believes the government is running the risk of drying up the housing market by introducing HIPs for three bedroom properties. Gordon Brown, he claimed, may rue the day he passed up the chance to kill of HIPs.

Tom Smith
29th September 2007

Tags: surveyors, fine, information, bedroom, government, home, packs, house

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: Non-profit organization, Foreclosure, Home Information Pack, Audhlam, pack

Housing Market Cools

It seems that the UK property market may be cooling at last, as estate agents are reporting that there has been an increase in properties coming up for sale. In the last few months that number of sellers has increased, but interest from buyers has taken a downward turn.

One online agency reported that the number of properties for sale has risen by over 13% in April, far above expectations. Another internet agency said that it had seen an increase in properties on the market by nearly 20% compared with the same time a year before. The trend appears to be the same across the market.

Although the time of year does see an increase in properties on the market, this time the numbers seem higher than usual. The shortage of housing stock that has had an influence on the way the market has risen seems to be reducing. The sellers’ market looks as though it is coming to an end, and the market may be close to its peak.

It seems that properties in the £150,000-£350,000 price bracket are having the toughest time, where affordability is tight and the slowdown is likely to bite hardest. First-time buyers are finding it extremely difficult to get into the market as property has been pushed further beyond their reach.

Another influence on the number of properties coming to market has been the wish to avoid the need for Home Information Packs (HIPs) in the lead up to their planned introduction of 1 June, and again in the lead up to the new date of 1 August.

Bank of England mortgage figure approval figures reached a twelve-month low in April at 107,000.

The Royal Institution of Chartered Surveyors believed that the HIPS, the continued increase in house prices and the increase in interest rates have combined to lead bring about a cooling of the market.

Estate agents believe that HIPs are single biggest reason for the increase in properties coming to market. These look to be extremely unpopular with sellers who will have to go to more trouble than before and, of course, pay for the packs.

Buyers, however, will see benefits with all the information they need in a single accessible pack. The uncertainty surrounding the introduction of HIPs has led to confusion, especially with the change in emphasis by the government, who said that the Packs would only be applicable to homes with four or bedrooms when the new date was announced.

Since then there has been even more confusion with a recent comment that there will be enough trained energy assessors by 1 August to encompass three bedroom houses. The government maintain that they announced that houses of smaller size will be included in the scheme as soon as enough assessors are available. If that happens by 1 August then three-bedrooms homes are likely to be included.

The general economy remains strong and interest in property is liable to remain so too. When confusion over HIPs dies down in the coming months, we are likely to see a return to normal trends.

Tom Smith
8th July 2007

Tags: hips, down, house, housing, decrease, rates, bank, slow, Mortgages

Hips lead to property boom

The introduction of Home Information Packs (Hips) has led to an increase in the number of properties on the market.

Property website Rightmove has revealed that the number of homes on the market swelled by ten per cent in June as homeowners scrambled to avoid the August 1st deadline.

The site says that around 200,000 new homes were put on the market in June, signalling the largest monthly stock rise for nearly three years.

Rightmove says that the increase is undoubtedly related to the introduction of Hips which will initially affect homes with four or more bedrooms.

“The rush to beat the impending Hips deadline appears to have attracted some poorly motivated sellers to the market,” commented Miles Shipside, commercial director at Rightmove.

“They are chancing their arm at some fairly bullish prices considering there is now a lot of property up for sale.

“Their main motivation will have been to save some money avoiding a Hip, rather than being realistic on price because they had seen a property they desperately wanted to buy,” he added.

Mr Shipside went on to point out that those who have put their home on the market in order to save cash by not getting a Hip may have actually cost themselves money.

He said that with the market currently flooded, many homeowners are being forced to drop the price of their home to make a sale.

Tags: homeowners, hips, deadline.The site, market.property website rightmove, Website, motivation, property boom

Govt still committed to Hips

The government remains committed to the introduction of Home Information Packs (Hips) in August.

Secretary of state for communities and local government Ruth Kelly has reassured homeowners that the government has no plans to back out at this late stage.

Hips will be mandatory in the sale of any house with four or more bedrooms from August 1st, with a view to a wider roll-out in the future.

Some concern had been raised that Hips would be completely scrapped following a humiliating government u-turn over whether they should be introduced to all home sales.

It was eventually announced that Hips would only apply to homes with four or more bedrooms but Ms Kelly has now offered some more details on how the packs will be phased into the entire property market.

She outlined how many energy assessors will be needed for the phased introduction and homeowners are being offered financial incentives to get a Hip before the August 1st deadline.

The reassurances from Ms Kelly have been welcomed by the Association of Home Information Pack Providers (Ahipp).

“Ruth Kelly has today provided much needed clarity for consumers, the Hip industry and energy assessors and she has reaffirmed the government’s commitment to the future of Hips,” said Ahipp director general Mike Ockenden.

“We now call upon all industries that touch the home buying and selling process to get behind the implementation of Hips, in order to deliver the benefits to home sellers and buyers.”

Tags: hips, Home Information Pack, law, future, packs, market, phased introduction

Hips delayed

Home Information Packs (Hips) are to be delayed following months of wrangling between industry officials and MPs.

Communities secretary Ruth Kelly has told the House of Commons that Hips will not be introduced on June 1st as promised but will instead be phased in from August 1st.

The announcement comes just ten days before the packs were due to introduced to the home-selling process and just one day before they were to be debated in the House of Lords.

Only days ago the government won a vote in the House of Commons in which it said Hips should be introduced on June 1st.

Now Ms Kelly has revealed that the date has been put back because there are insufficient numbers of surveyors trained and accredited to provide Energy Performance Certificates.

This comes despite recent assurances to the contrary and led to opposition MPs berating her in the Commons.

Ms Kelly remained adamant that Hips would eventually be introduced in the UK but said that the initial August 1st rollout would only apply to four-bedroom homes.

Tags: house, Commons, energy, insufficient numbers, hips, mps.communities secretary ruth

Hips divide industry figures

Home Information Packs (Hips) have won the first round of debates which could see their introduction on June 1st postponed.

The packs were given the go-ahead following a House of Commons vote but now they face a challenge in the House of Lords.

The housing market has been responding to the victory in the Commons, with the Association of Home Information Pack Providers (Ahipp) saying that it is good news for the environment.

“Yet again, government has demonstrated its commitment to reducing the carbon emissions of our housing stock and to improving the house buying and selling process for consumers across England and Wales, through the implementation of Home Information Packs,” said Mike Ockenden, director general at Ahipp.

“Industry is ready to deliver Hips and the benefits that the packs will offer to both consumers and the environment.”

The same view is not shared by the Royal Institute of Chartered Surveyors (Rics) however, which has commenced Judicial Review proceedings against the government over the introduction of Hips.

It has called upon the government to take “action” and postpone their roll out on June 1st.

“The introduction of Hips will have few benefits to the consumer and adversely affect the housing market and the wider economy,” said Jeremy Leaf from Rics.

“The government should be brave and postpone their flawed plans for home buying reform. By preventing this potentially damaging and chaotic policy Gordon Brown could give substance to his claim to lead a listening government.”

Tags: Jeremy Leaf, hips, reform, Politics, carbon, england, director, gordon brown

Hips to save time and money

The introduction of Home Information Packs (Hips) will “revolutionise” the home-buying process by providing “greater certainty” for everyone involved.

That is according to the Association of Home Information Pack Providers (AHIPP) which claims that the new laws on Hips will save time and money for prospective mortgage-holders.

From June 2007, the provision of Hips will be mandatory in the process of selling a home and the AHIPP claims that this will make things easier for everyone, particularly when it comes to duplication of information.

The organisation says that at present, it is possible that a number of prospective buyers will pay for the same information on a property as there is no central source.

When the new laws are introduced, it argues, this will no longer be a problem and buyers will end up saving money.

“Home Information Packs will strip out a lot of the wasted cost and effort involved in the home buying and selling process, particularly in those cases where sellers opt to include the voluntary Home Condition Report (HCR) in their pack,” commented Mike Ockenden, director general of the AHIPP.

In addition, the AHIPP says that Hips will speed up the buying and selling process, offering added security for both parties.

“Providing a Hip at the time of viewing can significantly reduce the time between offer and exchange of contracts, but also minimise the window for gazumping, giving greater certainty for buyers and sellers alike,” added Mr Ockenden.

Critics of Hips argue that sellers will be less likely to put their house on the market as they will have to pay for the packs before doing so.

Tags: saving money, hips, prospective mortgage-holders.from june, provision, certainty, information.The organisation, offering added security, Condition