8 Oct

Hips blamed for market slowdown

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.

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