Home information packs (HIPs), which were rolled out to include all
homes a month ago, are not meeting the Government’s objectives to
quicken the buying process or stop gazumping, according to a new study.
The introduction of HIPs was meant to help purchasing and selling a home, providing consumers with a fast and effective service.
However, market figures since the introduction of HIPs presents a different picture, says agent Hamptons International.
‘Instead of speeding up the buying and selling process, HIPs has actually discouraged sellers from putting their properties on the market.
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‘Figures comparing the market before and after the implementation of HIPs reveal the stock levels of new instructions were down 24% in London and in the country by 6%, resulting in a 15% decrease in overall stock levels across the UK,’ says Rob Bruce, senior research manager at Hamptons International.
A recent poll by Hamptons discovered that the contents of an energy performance certificate, which is part of a HIP, did not concern most buyers when it comes to finding the right property.
Another obstacle is the proposed implementation on June 1 requiring a HIP to be in place prior to marketing a property. With leasehold properties, in particular, it is anticipated there will be major delays while service charge details and other management information is collected.
‘If this first day marketing rule is introduced, the entire house buying and selling process will slow down and costs will increase. We urge the government to review its recommendations in order to help, rather than hinder the market further,’ adds Marc Goldberg, head of Hamptons’ residential sales.