Home Information Packs have led to a dramatic fall in the number of homes going up for sale, with the West Midlands one of the UK’s blackspots.
In some areas of the region, there has been an 82 per cent decrease in the number of properties with three bedrooms and above being put on the market.
Homes with more than two bedrooms now need to have one of the HIP packs in place before they can go up for sale. Costing several hundred pounds, they provide basic details about the property.
Local area searches, deeds and an energy survey into how well insulated the house is are included.
The number of properties requiring a HIP coming onto the market last month has continued to fall across the country compared to the same time last year, according to a new survey of members by the Royal Institution of Chartered Surveyors (RICS).
Seventy three per cent of respondents indicated a decrease in three-bedroom or larger properties coming onto the market, with eight per cent saying there had been an increase.
One of the worst affected areas is the West Midlands, with an 82 per cent drop in new instructions.
Nick Tart, whose firm has offices in Tettenhall, Albrighton, Bridgnorth and Telford, said HIPs had interfered with the market throughout the year.
“First of all it was people trying to beat the HIPs deadline, and now it is squeezing people off the market,” he said.
“It is purely down to the cost and inconvenience of HIPs. Some people put their houses on the market just to see what offers they might get, and it is cutting these out altogether.”
Nick Berriman, co-principal at Berriman Eaton, which has offices in Tettenall, Bridgnorth and Wombourne, said they had not seen any marked reduction in new instructions, but added: “One thing has been clear, however - complete market apathy about HIPs.
“We have 40 homes on sale with Home Information Packs and not a single person has asked to see one.”
RICS spokesman Jeremy Leaf said: “Although they are not the only factor, HIPs are continuing to have a detrimental impact on the housing market, in spite of assurances from the Government that this would not happen.”
By Business Editor Jim Walsh
8 Comments
The main factor in the downturn of the market is the introduction of HIPS. How do we know? because our clients tell us! The HIPS providers are quick to tell us that they will reduce the tome taken and the number of fall throughs, where is the proof? The results of trials have not been published and the HIPS have not been in long enough to provide statistics so how do they know this? HIPS will not affest the chain system we have in this country, they should be scrapped. They cost the sellers more, do not benefit buyers and basically make lots of money for the commercial providers.
Who honestly believes HIP’s will prevent people moving home. They cost little more than the total cost of the usual searches etc needed to sell a home. Sales will go through quicker. Regarding the comment in the article regarding “people just put their houses on the market to see what offers they will get”, I think this is extremely inconsiderate and should be stopped to prevent potential buyers being disappointed and having their time wasted. Not to mention Estate Agents doing unnecessary and costly work.
Well said Lesley!
RICS and other organisations are reporting a downturn in the amount of properties that have been put on the market, it could be said that due to the RICS judicial review causing the delay of the introduction allowed estate agents more time to market the “Avoid the HIP sell now” campaign. The truth is that the amount of properties being put on the market started to decline BEFORE the introduction of HIPs a fact not commonly reported. Interest rates going up coupled with the run on Northern Rock and poor lending in America has by far been the biggest contributor to the downturn and lack of confidence in the market.
HIPS are the start to a major reform in the buying and selling process, one that has been far overdue. Lets start making this process consumer driven and not industry driven.
As someone with no axe to grind but with a keen interest in this debate as a potential/buyer/seller, I would like to make the following point. As house buying is still a case of ‘caveat emptor’, the ‘Home Information Pack’ is an ill-conceived irrelevance. Does anyone’s naivety stretch to trusting a ‘Home Information Pack’ commissioned by the sellers and produced by their agents? Did anyone buy a property taking advice from a solicitor or surveyor being paid for by the seller? As a buyer I, for one, will continue to engage and pay professionals to protect my interests as a buyer. As a seller I resent not being free to offer my property for sale without commissioning a ‘Home Information Pack’. An ‘offer to sell’ is ‘an invitation to buy’ and I am, in effect, having to pay for the privilege of offering to sell. What next, I wonder?
It could be said that we polish our cars before we sell them, why not give the buyer all the possible information up front so the can make a more informed decision before they instruct their professionals?
Good analogy, Greg!
Polish is as superficially convincing and provides as much in-depth information about buying a car as the Home Information Pack provides about buying a home. It’s all about glossing over (pun not intended) what you don’t want the buyer to know about.
Would you really buy a car because it was well polished and the seller told you it was a ‘good little runner’? Or would you make your own investigations, possibly through a third party automotive professional, before parting with your money?
Maybe HIPS was the final nail in the coffin! I visited my folks in Darlaston from London and was being told of the house prices going over £200k… my first question was how can people afford it?? Wages are not as high as down south so it cant be through that… people are just borrowing more than they can afford is the only answer!
Home information packs have been the poison chalice of the industry, but it is ridicilus to say that due to ther implementation the market has slowed and the number of instructions falling off.
if this iniative was scrapped and replaced by mandatory condition report, buyers may then welcome this as it will give wort’s and all history about the property.