HIPs ban leads to surge in homes for sale
Share
The number of new properties coming onto the market jumped by 34% following the government’s decision to suspend HIPs, a 68% increase on the same week last year, according to Countrywide.
This increase has seen the number of new properties reach levels not seen since September 2007 – the same month that HIPs were extended to cover three bedroom properties.
The latest figures also reveal that sales jumped 8% on the previous week - the highest weekly volume since February 2010.
Robert Scarff, managing director of Countrywide’s estate agency division, says: “The results speak for themselves and show that the timing of the suspension of HIPs was crucial.
“This decision has provided homeowners with the incentive they need to put their properties on the market. Those sellers that were in two minds are now doing so and causing a big spike in activity for agents.”
Scarff adds: “The increase in activity kicked off as soon as the government announcement was made. Not surprisingly, there have been no reports of buyers questioning how the HIPs suspension will affect them or if it will add to their costs – this clearly shows how highly regarded HIPs were and supports our view that the government was 100 percent right in their decision to suspend the scheme.”
Readers' comments (7)
Katie Tucker | 1 Jun 2010 10:32 am
Hopefully the increase won't just be the people who would otherwise have been waiting a few weeks for the HIP brinnging their sale forward- as these will even out. There will also be little genuine money-making activity from the vendors who weren't sufficiently motivated to sell to get a HIP done.
The true value here is in the potential vendors who had not been able to "put it on the market just to see what we could actually get for it", now listing it and finding that they could get a good enough figure to consider moving, so it's up to the negotiators to grasp this opportunity and make the sale.
Unsuitable or offensive? Report this comment
Tim Robinson | 1 Jun 2010 10:36 am
There is no surprise in this news, this is something I have been advocating since HIP's were launched.
Perhaps now the basic enonomic rules of supply and demand will now come in to force as the housing market and the activity therein increases.
Thank goodness commonsense has come to the fore and Hips haver been pushed into the "what a waste of time and money" draw.
Unsuitable or offensive? Report this comment
Matt | 1 Jun 2010 11:01 am
The market had already picked up, nothing to do with the announcement
Unsuitable or offensive? Report this comment
Steve | 1 Jun 2010 11:09 am
HIP - HIP - Hooray...! :)
Unsuitable or offensive? Report this comment
chris in Bristol | 1 Jun 2010 11:24 am
I understood that the main motive behind a HIP was to speed up the sale ... really?
I would rather see a process whereby both parties were committed to sell/buy much earlier in the process - that would give certainty and less angst and cost [through 'sales' that fall through].
Unsuitable or offensive? Report this comment
Iain Crump | 1 Jun 2010 11:27 am
It is good to see that this byzantine piece of red tape has been untied and that we are seeing real results, as predicted by many (in reality almost everyone) in the industry.
Perhaps the new Coalition can find a few more pieces of old 'New Labour' 'political correctness' to unpick and get the economy moving again.
A good start and three cheers!
Unsuitable or offensive? Report this comment
Martin Tapper | 1 Jun 2010 2:15 pm
HIPS was a good start to get the housing stock for sale up.
The next step is to get more people to buy so please can we have stamp duty raised to £250,000 across the board and not just for first time buyers.
Unsuitable or offensive? Report this comment