8
Oct
Hips blamed for market slowdown
Home information packs (Hips) are discouraging people from selling
their homes and putting further strain of housing supply, it has
been claimed.
Recent figures showed there has been a 37 per cent reduction in
property coming onto the housing market.
This has been contributed to by the introduction of Hips, according
to a survey from the Royal Institution of Chartered Surveyors
(Rics), which found that 73 per cent of estate agents reported
there had been a reduction in the number of larger homes currently
for sale.
Rics spokesman Jeremy Leaf said: "Although they are not the only
factor, Hips are continuing to have a detrimental impact on the
housing market, in spite of assurances from the housing minister
this would not happen."
Hips are currently compulsory for sellers of all three and
four-bedroom homes, and under government proposals will cover all
properties by the end of year.
Other factors deemed to have slowed down the property market are
higher borrowing costs – caused by five base rate rises in
the last year - and the ongoing fallout of the global credit
crunch.
The market has also slowed down in the wake of higher borrowing
costs, caused by five base rate rises in the past year, along with
the impact of the global credit crunch.
