Insurance News Archive
Property market slowdown is 'not due to Hips'
The recent slowdown in the property market cannot be blamed on the newly-introduced Home Improvement Packs (Hips), according to industry experts.
Firsthips, a unique trading platform for estate agents and property lawyers providing Hips and e-conveyancing, said that links between the packs and the market slowdown are inaccurate, noting that their cost is nominal in comparison to the prices of the properties which are being purchased.
Rob Kellermann, managing director of Firsthips, said: "At the end of the day a Hip costs £300, which you actually save when you buy a property. If you are selling your house for £200,000 you are not going to say 'I'm not selling it anymore because I've got to pay £300'."
He also highlighted that the Hips are currently only required for purchases of properties with more than three bedrooms, therefore not affecting the cheaper end of the market, which is likely to be more susceptible.
Mr Kellermann added: "Once people understand what the Hips are about, once they start to get the benefit when they buy, they will see the benefit."
As of December 14th 2007 all properties marketed for sale in England and Wales will need to be accompanied by a Hip, which includes a home energy rating, as well as advice on how to cut carbon emissions and fuel bills.
Sale statements, searches and the evidence of title are also included in the pack.
23 Nov 2007
