It has emerged that the debacle which is Home Information Packs (HIPs) may have had more of an impact upon the housing market than first thought. Data from the last two months has shown an unexplained rise in the number of homes for sale, against historic trends and totally unexpected. Did the HIPs situation play a part?
It now appears highly likely that the confusion surrounding the introduction of HIPs may well have had an impact on the property market, creating a short term glut of houses for sale and knocking the average prices realised.
HIPs had originally been due to come into play in England and Wales on 1st June, although after legal challenges and the admissions of problems with the number of inspectors, the government have since delayed the introduction until 1st August. The authorities have also introduced exemptions for some properties, introducing more confusion to the market.
The whole debacle is set to continue for some time, with a number of prominent market observers of the opinion that the government will very soon announce the scrapping of the project, at great expense to industry and the tax payer.
It has also been reported that many would be inspectors (many of whom paid for their own training) have been experiencing financial difficulties due to the cost and delays in the introduction – the cost of training appears to have been in the region of £20,000, with many people resigning their old employment prior to the expected launch on 1st June.
Quite how the HIPs saga will end is unclear, but you can expect more twists and turns.