Supply concerns follow Hips launch
September 11, 2007 by admin
Filed under News, News-Mortgages
Following the implementation of Home Information Packs (Hips) for three-bedroom properties this Monday, the National Association of Estate Agents (NAEA) has expressed fears that the market for three-bedroom properties could now decline.
The UK’s leading professional body estate agency said that 63 per cent of its 10,000 members had seen a similar downturn in sales of four-bedroom properties after Hips were first introduced at the beginning of August.
The fall in sales, which was as large as 37 per cent in some regions, was attributed to homeowners staying away from the property market in order to avoid having to pay for a Hip.
“Our concerns have always been that the introduction of Hips would lead to a lack of supply following implementation,” said chief executive of the NAEA, Peter Bolton King.
“The most important thing for consumers and the market right now is that the government maintains the right for first day marketing of a property.”
NAEA members have also revealed that the average price being paid for Hips is currently around £350, and that most packs are excluding the voluntary home condition report, which is considered by many as the only useful part of the pack after the energy performance certificate.
With the implementation of Hips for three-bedroom homes, 60 per cent of the total housing stock is now covered by the government’s new rules.
