April 2008

HIPS ‘NOT HELPING THE MARKET’

HOME Information Packs are not enhancing the housing market or meeting the original objectives of speeding the buying process and stopping gazumping, a leading estate agent has claimed.

The introduction of HIPs was designed to help the home buying and selling process, providing consumers with a faster and more effective service, which was better value for money.

But Marc Goldberg, head of residential sales at Hamptons International, who have 82 UK offices, claims that market figures since the introduction of HIPs in August and their extension to all properties in December present a very different picture.

“Instead of speeding up the buying and selling process, the introduction of HIPs has actually discouraged sellers from putting their properties on the market,” said Mr Goldberg. “Figures comparing the market before and after the implementation of HIPs reveal that our new instructions in London were down by 24 per cent and elsewhere by six per cent, resulting in a 15 per cent decrease in overall stock levels.”

Mr Goldberg said that Hamptons International are fearful that the proposed legislation for June 1 — after which properties cannot be marketed until a Pack has been prepared — will hinder the process further, especially given present market conditions.

“We are certainly concerned about the proposed implementation on June 1 of requiring a HIP to be in place prior to marketing a property – especially given the current time delays that are involved,” he said.

“For leasehold properties, it is also proposed that management information is contained within the HIP which will cause major delays given the standard response times of management companies to provide this.

“The introduction of HIPs was supposed to enhance the sales process, but this just hasn’t been the case.

“If the proposed implementation for June 1 takes place then this will very seriously slow down the entire process and increase cost.

“We would seriously urge the Government to review its recommendations in order to help, rather than hinder the current residential market further.”

Mr Goldberg’s call adds further weight to the campaign against the end of first-day marketing which has been fought long and hard by the National Association of Estate Agents and has been the subject of a petition launched on the No 10 Downing Street website. That was instigated by the anti-Packs pressure group SPLINTA and quickly attracted thousands of signatures.

Meanwhile, a recent poll by Hamptons International also found that despite Government confidence that energy performance certificates — a key component of HIPs — will reduce fuel bills and benefit consumers, energy efficiency is not a key consideration for most buyers when it comes to finding the right property.

“The growing concern for the environment is yet to affect buying decisions within the property market today, particularly within London,” said Mr Goldberg.

“With affordability issues and so many people competing for every square inch of property, there just isn’t the luxury to search by carbon output.”