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Another Nail In The Housing Market Coffin

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Plan for HIPs about to change again

The controversial Home Information Packs (HIPs) are in the news again. Already postponed from a 1 June introduction to 1 August and changed to only included homes with four bedrooms and more, it appears that a further revision is in the offing, with ministers now considering forcing the scheme on three bedroom homes from the start as well.

The reason for the pull back was that weren’t enough qualified assessors to carry out energy performance assessments which are a key part of the packs. The Home Inspectors’ Forum, representing assessors, said that they had been told that if there were enough assessors by 1 August, the scheme would include three-bedroom homes. With more assessors achieving qualification, this has become a distinct possibility. This would potentially affect many thousands of sellers over the country.

Two thousand assessors are needed to cover three-bedroom homes, and there are now 1,300, with 2,500 expected to be ready by 1 August. And with 3,000 to be accredited by mid-August there is a real possibility that HIPs will be applied to all homes.

Whilst the Home Inspectors’ Forum are pleased with progress and see HIPs as important to buyers who are making such important purchases in their lives, estate agents are not so sure, and believe that the possibility another change in the roll out will only serve to confuse people even more.

The Government has already had to back down from the original deadline for all homes, reining the scheme in to a four-bedroom home introduction on 1 August to save face. Now, talk of ‘three-bedroom with a study’ sales means it is pushing for smaller properties to be included in the August 1 launch too.

Some industry watchers would suggest that the Government review stamp duty on house purchases, which continues to catch more and more people at higher and higher levels, rather than rush through their ill-conceived plan for HIPs.

I guess they mean Phil, Kirsty & estate agents by 'industry watchers' :lol: well they can carry on watching as if interest rate rises were not bad enough, VI will have to deal with HIPs in 3 weeks time.

If they did include 3 beds from the start it would cause more panic & extra stress to the housing market. Good stuff!

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This means extra supply will get blamed on HIPS and not the interest rate rises, although we've seen supply starting to surge beforehand anyway.

A glut of properties on the market will be nice :lol: .

So adding £500 to a sale is going to cripple the market? This would be the same £500 that did not cripple it last time? Or would it be the same £500 that can be passed onto the buyer?

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So adding £500 to a sale is going to cripple the market? This would be the same £500 that did not cripple it last time? Or would it be the same £500 that can be passed onto the buyer?

What is the real reason behind VI's panic then if £500 didn't matter? It is the sentiment not the cost. Sellers won't be able to sit on overvalued property for a couple of years, until they find the fool they are looking for, as HIPs will have to be renewed with an extra cost.

HIPs will disturb the market and you know it

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So adding £500 to a sale is going to cripple the market? This would be the same £500 that did not cripple it last time? Or would it be the same £500 that can be passed onto the buyer?

£500 if your selling a house for £70000 is quite a bit, not everyone lives in London

it will rush lots of people who where going to put up property over 3 months into doing it before an artificial deadline, hence increasing supply.

with increased supply, buyers have more choice and visit more places.

sellers are left with the impression of lots of viewings and no offers, decreasing their asking price

= decrease in price

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Guest Popalot

The other point about HIPs which people fail to mention is that they will reveal the mankiness of a property - and affect the overall sale price. Grubby BTLers who have bought up whole streets in Ipswich will have to get more than Kim and Aggy in if they are to actually pass the HIP test........... that will often cost them way more than £500

Watch all the turkey properties coming on in a rush....

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I guess this now means that we're going to see a surge of two-bedroom houses with en suite study, gym or private cinema coming onto the market... :blink:

They should have used gross internal area as the threshold, difficult to fake that one.

VMR.

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Given that many 'bedrooms' are barely big enough to fit a single bed in, perhaps calling them a study or boxroom would be more honest anyway! There is one house I looked at on RM (why bother seeing it in the flesh) which had a 'bedroom' only 7' 3" by 6' 3". There was a 'built in bed', presumably because you couldn't get a normal one in!

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