Hips have not put people off buying homes

Published: November 22, 2007

It is false to claim that fewer people are taking out mortgages and buying properties as a result of the recent introduction of Home Information Packs (Hips), an industry expert has said.

Hips were introduced on three- and four-bed properties in the UK earlier this year and some have claimed that their cost has put off people from buying new homes.

Rob Kellermann, managing director of Firsthips, said that the cost of the packs was unlikely to have had a massive impact on the UK property market.

"At the end of the day a Hip costs £300, which you actually save when you buy a property. If you are selling your house for £200,000 you are not going to say, 'I'm not selling it anymore because I've got to pay £300'," he explained.

"The fact that anything under three bedrooms does not require a Hip now means that if Hips were slowing the market you would expect to see less of a decrease in one and two bedroom property sales, but that isn't the case."

Instead, it is possible that rising interest rates have made it harder for consumers to find the best mortgage deals and so encouraged them to wait before buying a property.

The government announced today (November 22nd) that Hips would become mandatory for all homes in the UK from December 14th.