Hips reduce sale cancellations

LMS has reported that sale cancellations have declined since the introduction of Home Information Packs (Hips).

According to data from the Hip provider, cancellations of instructed sales reached a high of 17% last summer but had fallen to 15% by December.

The decrease may be small but it does come at a time when a growing sense of unease in the property market could have prompted a rise in cancellations.

Dominic Toller, director of marketing and new business at LMS explains: “Given the turbulence that has rocked the housing and credit markets in the last few months, it is remarkable that cancellations haven’t plummeted to unseen depths.”

Adding: “Hips promote a more informed decision-making process - only people truly serious about selling will put their house on the market, and a buyer is completely informed about a house before they make an offer. In the future when the market has stabilised, we should see these factors significantly reduce the amount of transactions cancelled.”

Meanwhile, Members of the Scottish Parliament have agreed proposals to launch a single survey system for property vendors.

From the beginning of December, home sellers will need to buy a 3-tier report that will include a surveyor’s report, an energy efficiency report and a property questionnaire.

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