News

"Widespread confusion" ahead of Hips launch

The general public remains 'ignorant' about home information packs (Hips), new research claims.



A survey from propertyfinder.com found that 36 per cent of the public think that Hips - which become compulsory after June 1st - stands for homeland immigration policy, while 27 per cent know what it stands for.

Homebuyers and sellers are more knowledgeable about the subject, with 80 per cent of buyers and 94 per cent of sellers knowing what Hips stands for.

However, the report identified "widespread confusion" over the contents of Hips, with three-fifths of buyers incorrectly expecting to receive a home condition report and two-fifths wrongly thinking that a full structural survey will be contained.

Warren Bright, chief executive of propertyfinder.com, said: "The level of ignorance in the general public is astonishing given the publicity Hips have had over the last year."

The firm also reported that after surveying estate agents it had seen no pre-Hips rush to sell property before June 1st, contrasting with reports from other companies which say that they have seen an increase of homes coming onto the market.

Primemove.com predicts that April will have finished with a 15 per cent increase of new properties coming to the market compared with last year.

Insurances Limited “To called the general public ignorant is a bit strong, it is mere human nature to put off the inevitable to the last minute. It will be the Estate Agent who will have to be strong and the day the HIP becomes operational.”

Property investors 'look to exotic locations'

UK property investors are looking further afield for opportunities in "exotic" markets, the director of Investors Provident has said.

Hetal Shah remarked that the average property investor has "moved away from France" and is looking at countries which are cheaper and offer quicker returns.

He explained that people are drawn toward investing in the country which is the "flavour of the month" and that the recent rush to buy property in Bulgaria is an example of how this type of fervour begins.

Egypt, Morocco, Cape Verde, India, China and Brazil are examples of the types of "far-out" locations which a typical property investor might show interest in, he said.

"It's just moving away from Europe - I think Europe has really been done, and done, and done," Mr Shah commented.

"When markets like Brazil open up, you go there, you have a good time, and you think: 'You know what? It looks like an amazing place and I'd like to own a house there.'"

He added that the decreasing cost of air travel has opened up possibilities for property investors to buy in locations which were previously more difficult to access.

Brazil is the largest and most populous country in Latin America.

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