Hips rolled out to three-bed homes

Hips rolled out to three-bed homes

Owners of three-bedroom homes who put their property up for sale will have to provide a home information pack (Hip) from today, as the government's controversial scheme is extended.

The change comes just over a month after the packs became compulsory for four-bedroom homes, and means 60% of the total housing stock is now covered by the rules.

The Department for Communities and Local Government (DCLG) said the introduction of Hips was already starting to reduce costs and improve transparency in the housing market.

The communities minister, Iain Wright, said: "Families buying four-bedroom homes are getting clear information, which shows how they can save hundreds of pounds on their fuel bills and cut carbon emissions too.

"It is important that this should be available for people buying three-bedroom homes as well."

The government had initially limited the packs to properties with four or more bedrooms when it launched them at the beginning of August amid fears that not enough energy assessors had been trained.

But it announced last month that there were now enough energy assessors for the packs and energy performance certificates (EPCs) to be rolled out to three-bedroom homes.

It added that it would be making an announcement about the inclusion of smaller properties in the scheme in due course.

The packs, which include an EPC, standard searches and evidence of title, aim to speed up the house buying and selling process.....continued below

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by giving consumers more of the information they need up front.

They also aim to reduce the number of sales that fall through. At the moment around 30% currently collapse between offer and exchange - the equivalent of around 500,000 transactions a year - leading to £350m being wasted in fees.

Energy ratings

According to a survey of EPCs produced so far, on a scale from A-G the average four-bedroom home is getting an E rating.

A government spokesman said this meant average four-bedroom homes and above could save hundreds of pounds on heating, lighting and water bills by increasing their energy efficiency.

An E rating could potentially rise to a C if consumers carry out measures recommended in the certificates, such as loft and cavity wall insulation.

Hips have endured a rough ride since they were first conceived, with critics claiming they added to the cost of selling a home while bringing little benefit to the consumer.

Property experts also warned not enough work had been done on how they would affect the housing market as a whole, with some claiming they would lead to a slump in sales due to the upfront cost people now faced when putting their home on the market.

Shunning the market

The inclusion of three-bedroom homes in the scheme has been hailed by pack providers as evidence of their success.

Dominic Toller, director of marketing and new business at provider LMS, said: "Much needed reform is under way and it hasn't brought the housing market to its knees as some had predicted."

However, one of the most vocal critics of the packs, the Royal Institution of Chartered Surveyors (Rics) said sellers of four-bedroom properties have been shunning the housing market.

The number of four-bedroom properties for sale in August more than halved in certain areas across the country compared with the same month last year, it said.