The introduction of Home Information Packs (HIPs) has led to “wild fluctuations” in the housing market, according to a survey by the property firm Rightmove.

The survey reveals that average house prices in England and Wales rose by 2.7% in the month up 6th October. That was a complete reversal of the 2.6% fall in prices the month before. HIPs became compulsory on sales of four-bedroom houses in August and then for three-bedroom houses on 10th September.

Rightmove says that in the week before 10th September there was a 65% increase in the number of three bedroom properties coming on to the market as sellers tried to beat the deadline for requiring a Home Information Pack.

At around the same time, sellers of four bedroom houses were coming back into the market after waiting a few weeks to see how HIPs would work out. The combined effect was that a surge of three and four bedroom houses, which tend to be of higher value, came on to the market at the same time boosting the overall average price.

A Government spokesman said it wasn’t surprising that prices had fluctuated over a short period because some sellers were tempted to beat the deadlines for acquiring HIPs. However, he said, prices were already beginning to level out as the property market stabilised.

HIPs are already compulsory for anyone selling a three or four-bedroom house and will soon be required on all homes.

The packs must contain an index of contents, an Energy Performance Certificate, a sale statement, standard searches by local authorities or evidence that a search has been requested, evidence of title and information on leasehold or commonhold sales.

Please contact us if you would like more information about HIPs or any aspect of buying or selling a home.