HIP opinions show growing divide

Advertising around 90% of properties for sale through Estate agents in England and Wales, Rightmove’s analysis shows 41% of these fall into the three-bedroom category. This equates to around 80,000 newly marketed three-bed properties a month, all now requiring a HIP.

This is in addition to around 35,000 a month four-bedroom or more properties that have required a HIP to be commissioned if they were marketed from August 1st. The totals represent 66% of properties marketed.

Most three-bedroomed properties are currently situated within East Anglia and the East Midlands, followed by Greater London. The areas least densely populated with three-bed properties are Yorkshire and Humberside, followed by the West Midlands and Wales.

Miles Shipside, commercial director of Rightmove reflected: "This will be a tough test for HIP providers and estate agents processes, systems and resources as it represents a massive ramp up in the number of properties needing a HIP. It will expose any shortage of Energy Assessors too, especially if there are geographic holes in coverage compared to where properties are being marketed".

NAEA ‘uneasy’

However, the National Association of Estate Agents has said it feels the second phase HIP implementation has come about far too soon

The September launch has made the Association ‘uneasy’ – saying that they will be closely monitoring the impact they have upon the market.

Peter Bolton King, chief executive at the National Association of Estate Agents (NAEA), said: “The NAEA has consistently expressed concerns regarding the implementation of HIPs as there still remains a shortfall of qualified energy assessors taking the exams. We did anticipate the second phase to be in the Autumn, but with this announcement it now appears that the Government may try and include all dwellings by the end of the year! This will continue to place uncertainty into an already delicate residential market.

“The current housing climate remains unsettled at this moment in time. House owners and hunters are already feeling the pressure due to continuing interest rate rises which is placing increasing strains on their wallets. Also, reactions to the instability being experienced in the world's stock markets cannot but continue the current uncertainties. We do not believe that the announcement will assist in bringing about stability; to the contrary, it will hinder it."

Thumbs up

Not everyone feels this way though, as Dominic Toller, director of marketing & new business at LMS asserted: “The cost of a HIP has been hyped up. The truth is that most of the cost of a HIP was already present in the old system; all that consumers are paying for now is the Energy Performance Certificate. We expect this kind of information to be available when we buy a fridge, we should demand it when we buy a house or flat.

“About 11 million potential vendors will see time and money savings because potential house buyers will have all the up-front information they need to make an informed decision. LMS welcomes the Government announcement that Home Information Packs (HIPs) will be rolled out for three bedroom properties from 10 September 2007.”