Propertyfinder.com noted that the number of smaller properties coming to market had increased by 39 per cent since 22 November despite a seasonal decline, showing that sellers were trying to dodge the 6 per cent increase HIPs bring to the price of marketing a home.
This inclusion coincides with data showing that mortgages for home movers have reached their most unaffordable level since 1992 relative to income.
Warren Bright, chief executive of propertyfinder.com, commented: “HIPs have put the wind up sellers of smaller homes. Unfortunately, a glut of supply at a traditionally slow time of year could force them to accept lower offers than they would otherwise have done, so they may still lose out.
“With buyers and sellers already trying to adjust to the effects of the credit crunch, it beggars belief that the government would disrupt the housing market by forcing through its discredited HIPs programme at this time.”
HIP champions such as OpenBook are unsurprisingly supportive of this final phase. Gerard Buckley, the firm’s chief executive said that he was looking forward to the point when a buyer proactively asks to see the HIP before making an offer on a property.
Karen Babington, sales and marketing director at Easier2move, added that she found the negativity surrounding the launch to be ‘very disappointing’.
“HIP providers, Domestic Energy Assessors and all involved in the HIP process have a real chance to begin to work toward making the home buying process more efficient. We therefore hope that there will be no more unwelcome surprises from the Government in relation to these packs.”
However Stewart Lilly, president of the National Association of Estate Agents (NAEA) said that HIPs will be causing problems for some time to come: “This is a highly clumsy piece of legislation and we remain absolutely convinced that HIPs are not the way to improve the home buying and selling process or to deliver the important energy performance certificates (EPCs).
“Looking forward, we are particularly worried about how the government proposes to deal with the issue of first day marketing from June next year. We are also waiting to hear about how the inclusion of all leasehold information will actually be dealt.
The Association of Home Information Pack Providers (AHIPP) has said that the next challenge will be to improve the Pack so that HIPs can become ‘exchange ready’ and fulfil their ultimate potential.
Mike Ockenden director general of AHIPP said: “For HIPs to fully inform potential buyers about properties they are viewing it is vital that Home Condition Report (HCR) is made a mandatory part of the pack and that many of the searches which provide information on flooding, ground movement and contamination are included.
“By bringing this information back into the pack and certain documents that are required to complete the legal process, HIPs can be made exchange ready – removing delays from the process and reducing the number of failed transactions.”
