December 2007 / January 2008
A poor Christmas present, Minister!
Concern for first-time buyers and sellers as HIPs rolled out
THE National Association of Estate Agents
have expressed their dismay at the Government’s plans to roll out the final
phase of Home Information Packs to cover all properties from December 14.
The announcement that one- and two-bedroom homes will now follow all other properties
in requiring a HIP has come, say the NAEA, despite huge opposition from the industry
and warnings that the Packs are seriously damaging the market.
Meanwhile, the Royal Institution of Chartered Surveyors, in also criticising
the imminent rollout of HIPs to all properties, claim it will “crunch” first
time buyers out of the market.
NAEA president Stewart Lilly said: “We are extremely disappointed. The
Government seems hell-bent on pressing ahead with these ludicrous plans, which
it has been warned time and time again are not the answer. Meanwhile, in giving
such short notice for this final phase, the Communities and Local Government
department has demonstrated its total lack of respect for the industry and homeowners
alike.
“The CLG has highlighted the benefits it imagines there will be for first-time
buyers. But what about first-time sellers? They are already faced with huge expenses
as they trade up, most notably surrounding Stamp Duty. The cost of a HIP on top
of this is an unfair and unnecessary extra.
“The other point to consider is that if first-time sellers stay out of
the market, reducing the supply of more affordable properties available, then
the situation will be even worse for first-time buyers than it is at the moment.
“A small ray of light is the decision to extend first day marketing until
June 1, 2008. This will allow some breathing space for the market, but is in
no way a solution to any part of the HIPs fiasco.
“The incompetence and irresponsibility of the Government over HIPs seems
to know no limits. Why can’t they admit they got it wrong and let us work
with them to get things right?”
The RICS claims that the full introduction of HIPs will wipe 300,000 properties
off estate agents’ books as homeowners balk at the idea of paying £300-£500
just to get an idea of what price their property could fetch.
The Institution claim this will increase demand, causing house prices to inflate
well beyond affordability, pushing first-time buyers further out of the market.
Jeremy Leaf, chairman of the RICS’ residential faculty, said: “With
prospective buyers and sellers currently taking a ‘wait and see’ approach
to moving, activity in the housing market is grinding to a halt.
“The Housing Minister needs to understand that rolling HIPs out to one
- and two-bed properties could find first-time buyers caught between a rock and
a hard place as accessibility to the market would go off the scale.
“Lack of smaller properties for purchase will force first-time buyers to
remain in the lettings market where rents are already climbing at the fastest
pace in over eight years. If the Housing Minister genuinely wants to improve
the plight of first-time buyers, she should not continue with this flawed policy.”
But the announcement of the full rollout was strongly welcomed by the Association
of Home Information Pack Providers, whose deputy director-general Paul Broadhead,
said: “HIPs are here to stay. By working together with the wider industry,
we can now build upon this foundation and really revolutionise the market for
the benefit of the consumer and the industry.”
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