HIPs `stunting` housing market
Estate agents have warned that home information packs (HIPs) are "stunting" the housing market recovery.
Housing experts believe that the controversial rules, which were introduced in April, are deterring people from putting their home on the market.
Under the rules homeowners are required to have one of the packs in place before they can begin marketing their home.
According to the National Association of Estate Agents (NAEA), one in 10 estate agents believe that twice as many people would consider selling their home if the HIPs were withdrawn.
It said that a further fifth of agents thought the supply of property would increase by between 20% and 25% if sellers no longer needed to have a HIP.
The NAEA has warned that unless the housing supply increases the recent signs of recovery will not be able to continue.
It was hoped that HIPs would speed up the home buying and selling process by providing all the information required, such as local authority searches and evidence of title, up front.
But the cost of the packs, which are between £299 and £350, is believed to be too expensive and is acting as a deterrent to potential sellers.
Figures show that NAEA members had an average of only 67 homes on their books in April, down from 84 in April last year and 100 in December, before the new rule came into force.
Peter Bolton King, chief executive of the NAEA, said: "The housing market has seen a number of positive signs in 2009, particularly an increased demand for property and more sales being completed.
"However, this will be unsustainable without a steady supply of housing. HIPs are controversial and in the NAEA's opinion, relatively useless. That is bad enough, but these figures suggest that professional agents believe that they are actively harming the market."
The Royal Institution of Chartered Surveyors has also blamed the packs for a continuing fall in the number of new properties coming on to the market.
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