15% decline in housing stock following Hips launch

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by Kay Murchie

According to Hamptons International, the estate agents, new instructions to sell property were down 24% in London in the previous quarter and by an average of 6% across the country.

A spokesperson for Hamptons commented that Home Information Packs (Hips) have, without a doubt, had an affect on consumer behaviour and the market. Hamptons added that once the initial problems have been resolved with Hips, it will be interesting to see how the market reacts.

However seasonal trends, uncertainty in the international property markets and 5 interest rate increases have also had an impact on property prices.

The Royal Institution of Chartered Surveyors (Rics) recently announced that the number of 4-bedroom houses for sale has dropped by 51% compared to 12 months ago – predominantly due to the introduction of home information packs.

Hamptons also remarked that there is a lack of trained energy assessors to handle the amount of 4-bedroom properties coming to market. The extension of Hips to 3-bedroom homes will only make the situation worse and if not dealt with effectively could bring the whole property market to a standstill.

Hips are expected to be rolled out to include all 2 million properties coming onto the UK market by the end of 2007.