Labour 'blunders on' with HIPs by extending scheme to three-bed homes - News - Evening Standard
       

Labour 'blunders on' with HIPs by extending scheme to three-bed homes

Ministers are pressing ahead with extending Home Information Packs to three-bedroom properties despite fierce criticism.

Opponents said it was incredible the Government was extending the scheme from September 10 in the face of warnings it would lead to a slump in sales.

They said there was no evidence the "flawed" packs, introduced for those selling homes with four or more bedrooms on August 1, actually worked.

The packs, costing as much as £600, contain an energy performance certificate, title deeds and planning searches.

They are intended to speed up the selling process but experts have repeatedly warned they will increase the cost of selling a home and therefore slow down the housing market.

About 11million homes in England and Wales have three bedrooms and around one million are put up for sale each year.

The scheme is expected to cover a further 6.4million smaller homes by the end of the year.

The Royal Institution of Chartered Surveyors said evidence already pointed to a "substantial reduction" in the number of four-bed homes being put up for sale.

Jeremy Leaf, of the RICS, said: "We find it hard to believe that the Government is pressing ahead with this policy at such short notice without first conducting a proper market impact study.

"Preliminary reports suggest a substantial-reduction in the number of four-bed properties coming on to the market.

"The Government has no idea how this will affect the housing market."

Grant Shapps, the Conservative housing spokesman, said: "The announcement that this pointless red tape is going to be imposed on three-bedroom homes from September means many more people will now face extra cost and bureaucracy when they buy or sell their homes."

Andrew Stunell, the LibDem local government spokesman, accused Communities Minister Yvette Cooper of "blundering on with her eyes closed", adding: "This is just another stumbling step in implementing a flawed scheme."

Ministers insist the packs will speed up home buying by giving prospective purchasers more information upfront.

They also claim consumers could cut their fuel bills by an average £300 a year if they follow measures outlined in the energy performance certificates, such as installing loft insulation.

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