Home Information Packs: three bedroom homes will need them

Filed Under Finance

It was only a few days ago that I was predicting that home information packs will be extended to three bedroom houses soon, but I thought it would be more towards the new year given the need for more energy assessors.

I was wrong with the timing as the Government announced today that home information packs will be required for three bedroom houses from 10th September.

This is going to have a very interesting affect on the housing market as people with three bedroom homes, who were wondering about selling, will rush to put their property on the market before the 10th September deadline.

As 60 percent of the house market will now be affected by HIPs, a sudden flood of newly marketed properties before mid September is going to create a buyers market. Couple that with an already slowing property market which is starting to respond to the recent interest rate rises, and you are looking at some major discounts in the three bedroom sector.

Would I try and sell, or at least market, a three bedroom property before September 10th? Probably not, as supply will outstrip demand and you’ll be forced to take a low price for your house.

Unless you have to sell your home now, it would probably be better to wait until the market settles down in a few months time and just suffer the costs and inconveniences of the HIP.

Hopefully with the surprise fall in inflation rate, the Bank of England will not need to put up interest rates again for some time (though I do wonder if this is a temporary blip in the inflation figures) and this will help stabilise the property market, counter-acting any negative effects of the home information packs.

One thing is becoming apparent, though. The Government is serious about HIP’s.

Home information packs are here and they are here to stay, so whatever you think about HIP’s you’d better get used to them.