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Tuesday 13th of April 2010
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April 6, 2010    

HIPs get all-clear on influencing sales volumes

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by Gill Montia
”HIPs

The Association of Home Information Pack Providers (AHIPP) is arguing that Home Information Packs (HIPs) have never deterred potential sellers from putting their properties on the market.

Opponents of the packs, which were fully introduced in December 2007, maintain that they removed speculative vendors from the market on grounds of cost.

However, research from AHIPP claims that there has never been a correlation between the number of new properties put up for sale and the introduction of the HIP.

According to the Association, homeowners started to become shy of the property market in April 2007 before HIPs became law, with the number of new homes marketed falling 25% by July of that year.

However, between December 2007 (when HIPs were fully rolled-out) and February 2008, the number of new properties coming on to the market more than doubled.

Volumes then declined steadily over the course of 2008, as the credit crisis and recession took hold.

AHIPP director general, Mike Ockenden, comments: “The data clearly shows that there is no correlation between the drop-off in new properties coming on to the market and the full roll out of HIPs.”

He adds: “HIPs only cost around £250 to £300 … they have sped-up the time from offer to completion and reduced fall-throughs from 25% to as low as 9%. It is ludicrous to attribute seller behaviour to these packs.”

In related news, the Royal Institution of Chartered Surveyors recently reported a further shift in the balance of the UK property market, with new instructions outpacing buyer interest for the second consecutive month.

According to the body, a net balance of 15% of surveyors reported a rise, rather than a fall, in new instructions in February, compared with a negative balance of 5% in January.

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1 Comment »

  1. I dont believe that people will not sell their property because of a HIP. If people want to or need to sell, they will sell. If people are a unsure then they might not, but isn’t this better than sellers changing their mind half way through a sale and costing both parties more money with solicitors and valuations fees.

    I think the biggest concern I have with HIPs is the shelf life of the searches. If the property takes longer than 3 months to sell, then the searches are out of date and the buyer will have to pay to get them renewed.

    Comment by Gary F — April 12, 2010 @ 11:54 am

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