THE Government has announced that HIPs will become mandatory for one and two-bedroom properties from December 14, hightening expectations that they will soon cross the Irish sea.

Amid criticism that past rollouts (for three and four-bed homes) have constricted supply and pushed prices up, the final rollout for one and two-bedroom properties was subsequently delayed. However, the Government now defends its plan for full implementation by citing an independent report by Europe Economics.

This, they say, found no evidence that HIPs have played a part in falling prices and transaction levels and reveals that the impact on supply, post-rollout, is short-lived.
Nevertheless, certain concessions have been made to the critics of the scheme.

Due to concerns over the length of time it takes to acquire the necessary leasehold information for a HIP, not to mention the cost of this, the Government will temporarily allow leasehold properties to be marketed with just the leasehold document itself minus other information.

They will amend this in six months time. In addition first day marketing will be extended until June 1st to allow for market flexibility.

There has been an inevitable mixed response to the sudden implementation of the final phase, which the Government believes will benefit first-time buyers (it‰¥™s the seller who pays the £300-£350 for the pack).

RICS (Royal Institution of Chartered Surveyors) agrees that the final rollout will only hinder first-time buyers. They believe those who market their property to 'test the water' will now refrain from doing so, and subsequently reduce supply even further. RICS Spokesperson, Jeremy Leaf, commented: "With prospective buyers and sellers currently taking a 'wait and see' approach to moving, activity in the housing market is grinding to a halt.
"The Housing Minister needs to understand that rolling HIPs out to one and two-bed properties could find first-time buyers caught between a rock and a hard place as accessibility to the market would go off the scale."