Hip changes 'could slow down property market'

New Home information pack (Hip) regulations due to come into force on January 1st could have a detrimental effect on the speed with with transactions are conducted in the property market, Knight Frank has said.

From next year sellers of properties with at least three bedrooms will be required to have a Hip in place before they place their home on the market, as opposed to current rules which only require them to have ordered a pack.

This, the property consultancy firm has suggested, could lead to delays of several weeks for vendors who are not prepared for the time it takes to process a Hip's individual components.

"We are finding that a number of local authorities that we work with are taking weeks to return Hip searches," said Knight Frank Winchester's Hip expert Tom Woods.

"This isn’t slowing anything up at the moment because we can market the property anyway, but in 2008 it will be illegal for a property to be brought to market without a completed pack.

"This potentially means a wait of more than a month – frustrating for vendors wanting to put up for sale immediately because of a chain or to take advantage of a buoyant market," Mr Woods added.

Homeowners are not being put off from buying homes that score poorly on tests carried out as party of Hips' Energy Performance Certificates, it was advised earlier this week.

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