In something that doesn't come as complete surprise to many of you, the controversial Home Information Packs (HIPs) will be rolled out to all properties in England and Wales from December 14.
What a nice early Christmas present for those of you trying to sell your house!
Housing Minister Yvette Cooper said the roll-out of Hips would help first-time buyers by providing them with more information. The Government said early monitoring of the scheme showed it had gone smoothly, with HIPs taking an average of 7 to 10 days to prepare and costing between £300-£350, less than the £400 originally anticipated.
However, critics of the scheme (of which there are many), have said they are a waste of money, and suggested they only cause more slowdown in the housing market.
For the Conservatives, shadow housing minister Grant Shapps criticised the decision, saying it would make buying and selling houses "more costly and bureaucratic".
He said:
"This latest move will dismay hard-working families, because it increases instability in an already fragile market. Rather than burdening people with yet more red tape, Gordon Brown should have the courage to abolish what is widely regarded as a flawed and ineffective law."
The Royal Institution of Chartered Surveyors (RICS) said the full introduction of HIPs would "wipe 300,000 properties off estate agents books" as speculative sellers withdrew from the market.
Following the introduction of the packs on homes of 4 bedrooms or more on August 1, it reported a 51% fall in the number of homes of that size coming on to the market. They also blamed HIPs for a 37% fall in the number of 3 bedroom homes brought to market in September, when HIPs were rolled out to cover properties of that size.
RICS, which took legal action against the government at the beginning of the summer over the packs, and in doing so delayed their introduction from the planned date of June 1, said a full roll out would hit first-time buyers.
RICS spokesman Jeremy Leaf said:
"With prospective buyers and sellers currently taking a 'wait and see' approach to moving, activity in the housing market is grinding to a halt."
Leaf said accessibility to the housing market for first-time buyers would "go off the scale" as the supply of properties dried up.
"A 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," he said.
The decision to extend HIPs to all properties follows an independent review carried out by Europe Economics. This found "no evidence of any impact on transactions or prices" beyond a "predicted" and "marginal" short-term impact on new listings. The report also concluded that any delay to the planned roll-out due to "changing housing market conditions" would cause "greater market difficulties and uncertainties".
The housing minister, Yvette Cooper, said:
"HIPs and EPCs are already helping consumers to save hundreds of pounds off their fuel bills and are cutting search costs too. "All homebuyers will be able to benefit from energy efficiency advice, with those receiving low green ratings of 'F' and 'G' especially targeted for support and grants to make improvements to cut their costs and carbon emissions."
But the government acknowledges the owners of leasehold properties have faced difficulties, with some people finding it difficult to obtain leasehold documents quickly, and "disproportionate charges" have on occasion been requested.
At the moment sellers must commission a HIP before they can put their property on the market, but have a 28-day window for it to be finalised. The government has now said it will extend for six months the current exemption which lets leasehold documents be provided after the 28-day deadline.
It will also delay the introduction of new rules meaning a property cannot be put on the market until the HIP has been completed. This change had been due to take effect on 1 January 2008, but will now not apply until 1 June 2008.
The extension has been welcomed by the Association of HIP Providers (AHIPP) whose deputy director general Paul Broadhead said:
"The independent research by Europe Economics dispels suggestions by RICS and NAEA that HIPs are having a detrimental impact on the market place. HIPs are here to stay. We can now build upon this foundation and really revolutionise the market for the benefit of the consumer and the industry."
So, there is no escaping HIPs now; if you want to sell your house, you will have to have one.Will it change the housing market for good or bad though? Why not tell us what you think?
Are HIPs distorting the housing market?