Sellers rush to beat the home packs

Homeowners are rushing to put their property up for sale before the introduction of home information packs (HIPs) on 1 June, a report says. The Royal Institution of Chartered Surveyors (RICS) said homeowners were trying to beat the deadline to avoid the estimated £400-£600 cost of a HIP.

After 1 June property put up for sale has to have a HIP, holding title deeds and an energy performance certificate.

Property marketed before the deadline does not have to have a HIP until 2008.

At the same time, RICS said it would seek a judicial review of the government’s plans to introduce HIPs on 1 June.

The body representing surveyors said that the government had failed to carry out a proper consultation.

Criticism

HIPs are very controversial, with a host of housing industry bodies calling for a delay to their introduction in England and Wales.

On Wednesday, the introduction of HIPs is to be debated in Parliament.

Recently, a House of Lords committee described the opposition to the introduction of Home Information Packs as “striking” and “widespread”.

Critics have said that the industry and consumers are not ready for the introduction.

In particular, there are concerns that there are not enough qualified people to carry out the inspections necessary for the issuing of energy performance certificates – a key component of HIPs.

However, proponents of HIPs and the government are adamant that there is no shortage of inspectors and expect the introduction to go smoothly.

According to April’s survey of RICS members, the imminent introduction of HIPs is having a slight distorting effect on the housing market.

The report said that new instructions to sell property rose for the second consecutive months and “surveyors report that increasing numbers of sellers are listing their properties early in order to avoid the upfront cost of assembling the pack.”

As a result, RICS said the stock of unsold property has risen for the first time since last November.

Price growth

Nevertheless, house prices are still growing in most parts of the UK and in particular Northern Ireland and London.

This could increase the chances of further rises in UK interest rates, RICS said.

“Last week’s interest rate rise may not be the last as the housing market has not slowed as quickly as expected given the initial round of rate rises,” Ian Perry, RICS spokesman said.

RICS report is in line with other housing market surveys from the Nationwide and Halifax which have shown prices continuing to grow.

Source: bbc.co.uk