Abolished HIPs boost property market, says RICS
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The abolition of home information packs has seen more homes put up for sale, claims the Royal Institute of Chartered Surveyors.
The RICS UK housing market survey found 21% of surveyors receiving instruction compared to just 11% in May.
And although it was revealed 22% more chartered surveyors are reporting a rise in house prices compared to 19% in May, RICS expect prices to fall with the increase in supply.
RICS spokesperson Ian Perry says: “Surveyors are generally confident that sales will continue to pick up over the summer months.
“The increase in supply as a result of the abolition of HIPs is helping to support this optimism despite continuing concerns about mortgage finance. A higher level of instructions should meanwhile also lead to a flatter trend in house prices in the latter part of the year.”
A total of 73% of surveyors said that they expect the decision on HIPs to lead to higher levels of new instructions with the actual increase in supply anticipated to be around 15%.
But BSA director-general Adrian Coles says: “It seems a bit far fetched to me that the abolition of HIPs has seen a huge upsurge in purchases.”
A total of 10% more chartered surveyors reported a rise in new buyer enquires up from 9% in April.
Sales expectations rose from 27% to 31% but the average number of completed sales dropped by almost 5%.
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