The government’s confusion over home information packs (Hips) has thrown the buy-to-let market into chaos in many parts of the country.Many of those who put their properties up for sale to beat the Hips deadline of 1 June, creating a glut of properties on the market, have now decided to put them up for rent instead. This has led to a sudden flood of thousands of properties coming on to the rental market in the past few weeks, leaving many landlords, already hit by higher interest rates, struggling to find tenants for their properties.

The rental market is the latest casualty of the government’s indecision over Hips, which would have required sellers to provide information about their properties before they could sell them. Agents and landlords are reporting thousands of properties suddenly becoming available to let, forcing them to slash rents to find tenants. Worst affected areas seem to be city centres in Birmingham, Leeds and Nottingham, where there was already an oversupply of executive apartments.

The property market remains confused as to whether Hips will be introduced at all, or in what form. The packs, which would have included title deeds, copies of planning approvals, local searches, guarantees for any work done and an energy performance certificate, were to be required for all properties sold from 1 June and were likely to cost sellers between £300 and £500. Estate agents had geared up for their implementation.

But just 10 days before they were due to be introduced, Communities and Local Government Secretary Ruth Kelly announced they would be delayed and said only properties of four or more bedrooms would need a Hip from the new start date of 1 August.

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[1] September start likely for Hips and three-bed homes