Despite a government pledge to implement HIPs to four bedroom properties from 1 August, a number of commentators have suggested that homeowners could by-pass the packs by listing the fourth bedroom as a study.
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Duncan Samuel, managing director at Convex Conveyancing, said: “There is no legal definition of ‘bedroom’ it remains to be seen how they will prevent people calling what estate agents particulars usually described as a bedroom by another name, such as study, reception room or storage, in order to avoid the requirement for a HIP before they market it.”
Indications have also suggested that it would be cheaper to pay a fine for not having a HIP, rather than purchasing a pack. However Dominic Toller, director of marketing & new business at LMS, said: “Any suggestion that it makes more sense to pay a fine rather than get a HIP is wrong. DCLG’s newly published procedural guidance makes reference to regulation 35 of the statutory instrument. House sellers will be fined £200 per breach if they fail to comply. There is an implication that the fines could be applied on a daily basis too until the situation is rectified and a HIP is purchased anyway. It’s all down to Trading Standards.”
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He added: “I am sure that some agents will try and evade the rules but the reputational risk of being a victim of a serious Trading Standards clampdown could be far-reaching. Who wants to use an estate agent that gets in trouble with a regulator?”
