The three bedroom homes market is likely to suffer as a consequence of the introduction of the second phase of the controversial home information packs (HIPs)
The latest survey from the National Association of Estate Agents (NAEA) revealed that following the introduction of the packs on four bedroom houses, the market decreased in many areas.
More than 60 per cent of agents reported decreases in the number of larger properties in their books over and above the seasonal norm and homeowners staying out of the market to avoid HIPs was citied as the main reason for the decrease.
Peter Bolton King, chief executive at the NAEA, said: “Our concerns have always been that they 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.”
The average price being paid for a HIP is currently £350, indicating that in most cases the Pack is being put together without the voluntary home condition report (HCR) element as was predicted.
This was potentially the only other useful part of the pack after the energy performance certificate (EPC).
Agents across the country have been demonstrating strong feelings towards the Packs. One NAEA member, based in the East Midlands, said: “The introduction of HIPs is currently having a severe adverse effect on our market place. We dread to think what will happen as HIPs for three bedroom properties and other homes come into force.”
Date: 11th, September, 2007
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