Money News
With the Government having recently performed yet another U-turn when it comes to HIPs (Home Information Packs) - this time by extending the deadline requiring new build properties to have an Energy Performance Certificate to April 6th 2008 - a new survey from the National Association of Estate Agents (NAEA) shows just how contentious HIPs have become, given the record response rate to the survey from its members.
Members were asked in October to compare the market to the same time last year. The results showed that 83% of agents found that requests for market appraisals dropped with 9% of respondents finding a reduction of more than 50%.
When asked about the change in the number of instructions for 3 or more bedroom properties, 76% stated that they'd seen decreases in excess of 10% of which 46% had seen a drop in excess of 30%. This compares with a much smaller reduction for 1 or 2 bedroom properties with 37% of respondents finding a drop of more than 10%.
Peter Bolton King, Chief Executive of the NAEA, comments: "Clearly everyone accepts that there are a number of financial and economic factors that have caused the market to take a breather after 7 hectic years.
"However, these figures show that there is an anomaly between instructions on properties where a HIP is required and where one is not."
Bolton King added that he'd heard of many examples where potential sellers had decided against putting their property up for sale because they didn't want to risk wasting £300 or indeed much more, if they decided not to sell.
"It has been correctly stated previously that many sellers decided to 'beat the HIP' by marketing their property before August 1st 2007. It would therefore be reasonable to think that there would be a lull for a few months thereafter."
When members were asked how available stock levels were year on year - 76% of the 1050 respondents stated that their stock was either the same or less.
"At this stage of the market cycle, with sales slowing and normally a traditional autumn bulge in instructions, it would be normal to expect stock levels to be significantly higher.
"The fact that only 24% are saying that this is the case should worry the Government as this is just not normal. This once again appears to show the adverse effect HIPs are having on the market, the lives of consumers and indeed the overall economy," Bolton King added.
The survey then went on to ask the question of what should happen to HIPs next? It gave several options of ways to move forward including the full roll out of HIPs. However, only 6% felt that this was the right option with 76% stating that HIPs should be scrapped but Energy Performance Certificates should instead apply to all properties.
"Despite the fact that agents have now had an opportunity to work with HIPs it is clear that the vast majority of respondents do not believe that they add value to the process and are finding it hard to get purchasers to take interest in them.
"We feel very sorry for the many Domestic Energy Assessors who are waiting for the opportunity to earn a living," Bolton King noted.
09 November 2007 © Moneyextra.com
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