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Homeowners take advantage of HIPS Loophole

11/09/2007

New data has indicated that homeowners are taking full advantage of a loophole found in the system of Home Information Packs (HIPS)

Following the latest extension of Hips on applying to three-bedroom homes, Abbey states that many homeowners are now trying their hardest to disguise their additonal bedrooms to steer clear of purchasing one of Hips packs.

A proven report requested from Abbey during August period showed an approximate 4.5 million people with a four-bedroom property, believed that disguising a fourth bedroom to a playroom, study or leisure room would simply save money.

Research gathered showed that an additional four million people are to carry out the same strategy, scaling a three- bedroom house to a two-bedroom property, a little creative philosophy stated Abbey.

Investigators have found out that false declaration of bedrooms in an estate could disturb its significance in the long term.

Abbey's head of mortgages, Nici Audhlam-Gardiner commented, "Remarketing your home as a two-bedroom house with a study, you’ll become invisible to thousands of potential buyers that are searching online, specifically, for three or four bedrooms."


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