Hips rollout 'will hurt first time buyers'

22-Nov-2007

The government has announced that Home information packs (Hips) are to become a compulsory part of the home selling process for all sellers from December 14th, but the move has been criticised as one that could hurt first time buyers.

Hips have been a feature of the property market for homes with four or more bedrooms since August 1st, and for three-bedroom properties since September 10th, with today's announcement ending speculation over whether the government was delaying a full rollout because of the negative effect Hips were having on the market.

Both the Royal Institution of Chartered Surveyors (Rics) and the National Association of Estate Agents (NAEA) have said that Hips have contributed to a reduced number of larger properties being put up for sale since August, though such claims have been denied by the Association of Home Information Pack Providers (AHIPP).

However, Rics has today said that a full-scale rollout will end up affecting first-time buyers chances of getting on the first rung for similar reasons.

"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," claimed Rics spokesperson Jeremy Leaf.

"If the housing minister genuinely wants to improve the plight of first time buyers, she should not continue with this flawed policy," Mr Leaf said.

The government has said that Hips will help first time buyers by giving them a clearer picture of the kind of property that they are buying.

Helen Adams, Director of first time buyers' on-line advice centre FirstrungNow.com comments:

"The one group of people who should benefit most from Hips is first time buyers: As it stands at the moment the Hip has some value - but probably not as much as it allegedly costs to put it together.

"We would like to see more useful information for example bills, actual council tax and utility bills and Home Condition Reports all mandatory."

" This is a small step in the right direction but we at FirstRungNow.com believe that alot more could be done by the government to genuinely help first time buyers."

Minister heckled over Hips.

First time buyers 'will be indifferent to Hips'

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