Concern over Hips effect

There are concerns that Home information packs (Hips) could have a detrimental effect on the UK buy-to-let market.

The Residential Landlords' Association (RLA) says that it has already received a number of complaints from its members regarding the packs and it is concerned that further problems will lead to investors leaving the sector.

"The packs have a mind-numbing effect on people. It's another example of ill thought-out, expensive legislation being foisted upon the sector and RLA members have complained, generally, about cost, delays and poor service from pack providers," said Mark Butterworth, director of the RLA.

"Certainly agents report a surge in properties being listed prior to introduction – although it has been quieter since - and total disinterest from purchasers.

"There are concerns about the extension to two-bed and rented property, and a general sentiment that any more paperwork is likely to lead to disinvestment in the rented sector," he added.

Hips were introduced for properties with four or more bedrooms on August 1st and then expanded to include three-bed properties on September 10th.

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