Watts New

All Houses 'Welcome' HIPS

The government has recently announced that Home Information Packs (HIP), the new legislation affecting buyers and sellers of property, will be mandatory for all house types from the 14 December 2007.

As most home owners are now aware, a HIP is a set of documents providing important information about a property, but essentially it includes three mandatory items;

• Energy Performance Certificate (EPC) which tells how energy efficient the property is
• Evidence of title
• Searches

Initially HIPs only affected three and four bedroom houses and now some sectors of the market are concerned that their introduction for all house types will conspire to further reduce interest in an already struggling housing market, especially for First Time Buyers. With the increases in mortgage rates, affected both by the hike in Bank of England base rates, and more recently by the turmoil in the financial markets many feel this is the last thing the market needs.

However one local agent is keen to stress that things are not all doom and gloom and downbeat national trends do not always apply to the local housing market. James Watts director of Robert Watts Estate Agents and President of the Bradford & District Auctioneers and Estate Agents Association, stresses it is important to avoid talking the market into further decline and is positive that HIPs will not unduly affect the local market in the long term.

He says;

“Whilst most agents have not really seen any real benefit in the introduction of the HIP from day one, they are adamant that this latest news will not have a massive negative affect on the market. Market conditions are tough at the moment but we are positive things will improve in the New Year. Bradford and Kirklees is a robust residential area due to the absence of rapid fluctuations in prices in boom and bust years and therefore some of the media comments on a massive crash are wide of the mark.”

James continues;

“It is the First Time Buyers that are noticeably quiet although the good news for them is despite HIPs, stock levels are generally high and it is now a “buyers market”. A quick survey of stock levels at Robert Watts showed we have over 300 houses for sale up to the £150,000 price bracket and many agents report similar numbers. Additionally many of our vendors are now keen to offer generous incentives such as stamp duty paid, cash backs or solicitors cost paid in order to attract suitable buyers which is a huge bonus for these buyers.”

For more information on any aspect of HIPs please telephone your nearest Robert Watts branch.