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Thursday 20th of November 2008
August 22, 2007

Hips evasion strategies unlikely to profit vendors


by Gill Montia
”Hips

This August’s introduction of Home Information Packs (Hips) as mandatory for anyone selling a four-bedroom home has prompted a reaction amongst vendors seeking to find a loophole in the system.

According to research by Abbey Mortgages, 4.5 million people living in four-bedroom homes would be prepared to market their property as having three bedrooms rather than pay the £400 to £600 cost of Hips.

The majority of those surveyed (82%) would be happy to remarket a fourth bedroom as a study and some estate agents expect the word ’study’ to become a synonym for a fourth bedroom.

Others respondents would describe a fourth bedroom as follows: playroom (21%), games room (15%), walk in wardrobe (12%), TV room (6%), library (4%) and computer room (3%).

However, the Abbey is warning potential vendors that marketing a property as having a reduced number of bedrooms can have its disadvantages, particularly as 89% of people in the UK now go to the Internet to search for properties, with 73% using the number of bedrooms as a key search criteria.

This can lead to the loss of potential buyers and the likelihood of a lower selling price.

Overall Abbey Mortgages believes that strategies to avoid the cost of Hips are unlikely to be cost effective.

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