4 bedroom properties are flooding the market as sellers rush to beat the new HIPs deadline…

On the 1st June homes with four or more bedrooms made up 20% of the homes for sale on the propertyfinder.com website (in line with the national housing stock of larger homes), by the 25th of July 21.5% of the properties for sale on the site had four or more bedrooms. 

Warren Bright, chief executive of propertyfinder.com said: ‘There has been a noticeable rise in the proportion of larger homes for sale.  Clearly some home sellers are trying to avoid the extra hassle and cost of having to purchase a home information pack to market their property.’

Consumer faith dented by ‘false start’

However, the effects of HIPs on consumer activity are far more subdued than they were prior to the false start earlier in the year - when the number of properties listed on the site jumped 13% in the month and a half prior to June 1st. 

There is hesitation due to lack of belief the legislation will actually be implemented. After such a high profile U-turn in June, 9% of consumers questioned in July believed that there was a chance the legislation may yet be scrapped and 17% believed there could be another delay. 

Warren Bright explained that seller behaviour is echoing the apparent uncertainties of the government: ‘After the embarrassing June setback, our new cabinet seems to have learnt a lesson from the mistakes of their predecessors. 

“This time round a rather different approach has been adopted towards Home Information Packs – that is to keep quiet!  With HIPs about to roll out for homes with four or more bedrooms, the silence from the DCLG has been deafening.’ 

Hip avoidance strategies

Agents and consumers remain unclear about how to classify a four bedroom home and how the legislation will be imposed. 

Agents have questioned whether, as the legislation rolls out, a growing number of people will market their homes on the basis of floor space - as opposed to number of rooms - in order to avoid purchasing a HIP.  Alternatively they will simply call a fourth bedroom a study.

Warren Bright concluded: ‘Agents across the UK have condemned this current plan as half-baked and likely to cause confusion for all involved.  There are many ways of marketing a four bedroom property, without explicitly labelling it as such, and thereby sidestep the requirement for a HIP. 

“People in the industry are still unclear about the practicalities of enforcing the legislation and the effects it will have on the market - it is worrying the government is keeping such a low profile.’