As we approach the 1st June, the day when Home Information Packs (HIPs) will be introduced, the Conservative Party have failed in a bid to have the project cancelled. They lost a recent Commons vote, where they argued that the packs we too expensive (costing upwards of £300), would delay movement in the housing market and were badly thought out with some areas of information for the HIPs not available as at 1 June.
While it is common knowledge that first time buyers are the life blood of the housing market, there are signs that this stream of business may be drying up - with many being priced out of the market completely.
A report today has shown that on average first time buyers are spending more and more of their monthly income on mortgage repayments, with the figure standing at 18.3% of income in March 2007 (the highest since 1992), against only 16% a year ago. While this may not sound like an awfully large rise, imagine if interest rates rise further (as expected), energy costs rise again and the employment market comes under pressure - the results could be catastrophic!
As from the 1st June, any properties for sale in either England or Wales will need to have a Home Information Pack (HIP) before the property can be marketed. There will be a maximum 14 day period from the day a seller decides to put their home on the market to the day when they can actually begin to market the property. At £600 for a pack they are by no means cheap!
