Hips roll-out will affect first-time buyers

Permalink: Hips roll-out will affect first-time buyers
by Kay Murchie

The Government announced this week that Home Information Packs are to be extended to include all properties from December 14 but the move has been criticised by many and said could be harmful to first-time buyers.

Hips, including title deeds, council searches and legal documents, warranties and guarantees and an Energy Performance Certificate within the HCR compiled by a Home Inspector are intended to hasten the exchange of contracts, thereby saving buyers millions of pounds currently lost on abortive purchases.

They were launched on August 1 to include properties with 4-bedrooms or more and rolled-out to include 3-bedroom properties on September 10.

The Royal Institution of Chartered Surveyors (Rics) and the National Association of Estate Agents (NAEA) have both said that Hips have contributed to fewer number of larger properties being put up for sale since August.

However, these claims are misguided according to the Association of Home Information Pack Providers (AHIPP). AHIPP said factors such as the credit squeeze, the existing market slowdown and 3 interest rate rises since the beginning of 2007 should be taken into consideration.

Rics also said the full roll-out of Hips will affect first-time buyers chances of getting on the property ladder. A spokesperson for Rics said a shortage of smaller properties for purchase will force first time buyers to remain in the lettings market where rents are already escalating at the fastest pace in nearly a decade.

Rics continued if the housing minister, Yvette Cooper, genuinely wants to improve the plight of first-time buyers, she should not continue with this flawed scheme.