Hips for three-beds 'will be a tough test'

Monday, 20 August 2007 12:00 AM

The roll-out of home information packs (Hips) to three-bed homes from September 10th will be "a tough test," housing market experts are predicting.

A leading property search company has said the introduction of Hips "could escalate the confusion already within the market".

Hips became compulsory for homes with four bedrooms or more from August 1st 2007, following a U-turn by the government ten days before they were due to become mandatory for all properties on June 1st (full story).

"The new regime has not had time to settle down; we are being contacted on a regular basis by new Hip providers and even some solicitors who are very confused as to what should or shouldn't be included in the pack," explained Brian Gibbons, director of conveyancing services at Jordans.

"The market is simply not ready for the regulations to be widened to include all three bedroom houses. The implementation should not be rushed until the market has had time to adapt to the new legislation."

Figures from online estate agent Rightmove.co.uk reveal 41 per cent of homes in the UK housing market have three bedrooms, which is likely to see 80,000 sellers needing Hips for their three-bed homes every month. The website estimates around 35,000 packs a month are already needed for four-bedroom homes.

The Rightmove data forecasts that from September 10th two-thirds of properties will need a Hip commissioned before they can be put on the market.

However, regional variations mean that East Anglia, Wales and the Midlands are most likely to be affected, where seven in ten properties have three or more bedrooms. By contrast the percentage of London properties with three or more bedrooms is just 53 per cent.

Miles Shipside, Rightmove commercial director commented: "This will be a tough test for Hip providers and estate agents processes, systems and resources as it represents a massive ramp up in the number of properties needing a Hip.

"It will expose any shortage of Energy Assessors too, especially if there are geographic holes in coverage compared to where properties are being marketed."

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