Earlier this month, HIPs became mandatory for all homes being marketed with four or more bedrooms.
Joan Davies, Head of Business Development for Allied Surveyors, said: While 1st August was a huge millstone in the history of HIPs, as the packs became mandatory for all homes being marketed with four bedrooms or more, it is todays announcement that will see HIPs extended to all properties with three bedrooms plus, that will prove the real test.
With the relatively small number of packs ordered since August 1st resulting from a number of factors including: August being a typically quiet time of year; the small proportion of the market made up of properties with four bedrooms or more, and the avoidance tactics employed by a number of agents, who encouraged vendors to market their homes ahead of the 1st August to avoid paying for a HIP, systems and processes have not really been put to the test, with a small to moderate number of orders received by the majority of providers.
Extending HIPs to properties with three bedrooms or more will open the packs up to a much larger proportion of the market, putting a greater strain on newly implemented processes and the HIP related IT infrastructure of many agents and providers.
According to Davies, the next few months will prove critical in assessing the true value of HIPs and ensuring that industry is able to cope with the smooth implementation of this new reform.
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