Experts are predicting a significant fall off in the number of properties coming to market in the months following the introduction of Hips in June next year.

Surely if you want to move house, paying on average £700 for a HIP wont put people off selling, or would it?

I don't think you need to be an 'expert' to realise that!

So many times I have heard people saying they are "dipping their toe in the water" to see if they can achieve the price that allows them to move up. At the moment you have nothing to lose, if you cannot achieve the price you need you can take it off the market.

So a lot less speculative sellers will be coming onto the market, as after HIPS you have got something to lose. £700!

However, I don't think this is such a bad thing for the market, there is nothing worse than viewing a property where the vendor hasn't made a final decision to sell. The last time I was house hunting I had two offers accepted and later refused as the vendors had changed their minds and decided to stay living where they are! Numpties!

It may cause a fall in values, or it may cause a rise as more demand will be created through less choice.

The real losers in this are the 'experts' who may have less opportunity to make money. Fewer properties means less demand for EA's, Surveyors and Solicitors.

2 Agents I have spoken to say there will be a significant drop in their business and they plan to counter this by paying for part of the HIP's pack to keep things moving.
It is generally recognised now that this HIP's nonsense is nothing more than an imposed stealth tax on property selling by this Government and will serve absolutely no useful purpose whatsoever and there is heavy lobbying behind the scenes to get the whole thing cancelled.
So, all you budding under training, property HIP's inspectors who are currently paying £8000 for the years course you could be out of a job shortly after the introduction of HIP's.

Am I right in thinking that HIPS will only be valid for a short period of time anyway?

So if your house takes, say, six months to sell, you will need to pay for another HIP?

To quote the Association of Hips Providers

‘As packs will substantially speed up the selling and buying process the shelf life of packs and specifically searches and the Home Condition Reports are unlikely to be an issue - if these elements need refreshing this can be done speedily and at a marginal extra cost.’

It appears that sellers will not be obliged to update the packs. Buyers will most likely be advised not to rely on outdated information and to pay for updates themselves.

quote:

Originally posted by BrixMorta:
To quote the Association of Hips Providers

‘As packs will substantially speed up the selling and buying process the shelf life of packs and specifically searches and the Home Condition Reports are unlikely to be an issue - if these elements need refreshing this can be done speedily and at a marginal extra cost.’

It appears that sellers will not be obliged to update the packs. Buyers will most likely be advised not to rely on outdated information and to pay for updates themselves.

The speed at which a house sells is down to the market and nothing to do with the information available. Start getting a few interest rate increases and see the market slow down, if fewer people are able to move how will that make selling properties quicker? If a search needs updating why will it take less time because it's an update and not a new application? The request to the local authority is stil the same and they havn't changed their ways to deal with HIP update enquiries quicker. The same searches will need to be done as any element of them could have changed.

HIPS, if they were ever a good idea, have had their day. They may have done something to moderate the market a few years back but now they will just put the lid on an already slow overall picture.

If HIPS are coming in June 2007, would I have to have one if my house goes on the market say May next year? Do they only apply to properties new to the market or to properties already on the market? If not the ea could expect a rush of people putting their houses on the market just before June to avoid HIPs.

The introduction will not be retrospective, so if you go to market in May no HIP is required. However if it doesn't sell and you take it off the market and then decide to try again later in the year a HIP will be required.

You wont be able to market your property from June 1st 2007 without a HIP (Home Information Pack)

Before that date you dont need a HIP to put your property on the market, although the ‘stop dead’ date will be October 2007, so if you put your house on in May, you have to have exchanged contracts by October otherwise you will need a HIP.

Yes, the predictions are a glut of property entering the market Jan to May 07 and a shortage for about 6 months after June.

Daveyjp, They are referring to the speed of the conveyance and not how quickly a buyer can be found.

quote:

Posted 03-07-06 11:05
Am I right in thinking that HIPS will only be valid for a short period of time anyway?

So if your house takes, say, six months to sell, you will need to pay for another HIP?

Surely this is a good thing. Perhaps it will make people think more about their asking price. If they ahve to sell sooner or risk paying more fees then they might be more realistic in the first place! (ie. not putting it on at stupid price and hopng someone will be silly enough to pay that much

quote:

Originally posted by 1sttimebuyerSal:
Surely this is a good thing. Perhaps it will make people think more about their asking price. If they ahve to sell sooner or risk paying more fees then they might be more realistic in the first place! (ie. not putting it on at stupid price and hopng someone will be silly enough to pay that much

Or I could just add an extra £1000 on to the asking price in order to cover my costs?

but people may not be prepares or able to pay that extra bit and it could stay on the market for six months longer than it should

I do think that in principle providing a proper report with the property for sale is a good thing.

Has anyone ever thought about/suggested that it might be the (vendor's) EA's responsibility?!

Does the EA have a role to play in the proposed HIPs?

quote:

Originally posted by 1sttimebuyerSal:
but people may not be prepares or able to pay that extra bit and it could stay on the market for six months longer than it should

Most areas have property with prices open to negotiation. What is unlikely to happen is a return to the values of two years ago or more. FTBs who advocate a drop in prices to some notion of 'affordability' are suggesting buying into a dropping asset which is bonkers.

quote:

FTBs who advocate a drop in prices to some notion of 'affordability' are suggesting buying into a dropping asset which is bonkers.

property is not just an asset, it is also a home. If you buy something you can live in for a few years its doesnt matter so much. it only matters if you are planning on selling after doing up to make a profit!

quote:

Originally posted by 1sttimebuyerSal:

quote:

FTBs who advocate a drop in prices to some notion of 'affordability' are suggesting buying into a dropping asset which is bonkers.

property is not just an asset, it is also a home. If you buy something you can live in for a few years its doesnt matter so much. it only matters if you are planning on selling after doing up to make a profit!

Absolutely, but if prices are falling why not rent until things bottom out if that's what you believe they will do?
Either they will keep going up in which case the best bet is to buy, they are in a period of stagnation whereby it's a toss up between buying or renting a nicer house than you might otherwise afford or they are in a downward spiral and you'd be mad to purchase at the first dip.
I don't think this idea of property becoming affordable again has been thought through, either housing is a good thing to buy into or you shouldn't touch it with a barge pole.

quote:

Originally posted by cakehead:
I don't think this idea of property becoming affordable again has been thought through, either housing is a good thing to buy into or you shouldn't touch it with a barge pole.

Absolutely. There is never a good time to buy into a falling market. This is why house price shoot uncontrollably though the roof, as people jump on the bandwagon, or they fall through the floor as people desparately try to liquidate their assets.

Watch this space:

http://www.dailymail.co.uk/pages/live/articles/news/new...Module&icc=NEWS&ct=5

OK it's from a right wing Govt hating paper, but at least they are raising some issues which don't seem to have been resolved.

Dump the Stealth Tax! and they will when Stamp Duty, VAT on EA's commission and a host of other things associated with property buying and selling affects the Treasury Coffers.
I couldn't give a Monkeys whether the Daily Mail is Right Wing or Chicken Wing but if they are leading a campaign to get rid of Two Jags stupid tax raising plan then they can have my vote.
The message is beginning to be rammed home to the very people who are going to be the most affected by this nonsense and about time too.
Mel.

quote:

The message is beginning to be rammed home to the very people who are going to be the most affected by this nonsense and about time too.

Here, here!

As always HM Govt has an arrogant view that everything they decide is right. Now the majority is slim they are starting to listen to voices from those who will genuinely be affected, rather than a glib comment that EAs are only moaning because it will affect them.

RICS have raised serious converns about Governance of the Inspectors. RICS has a Royal Charter to provide a public service for the delivery of professional surveying - Home Inspectors will not be part of the RICS governance and complaints procedure, so another body will be needed to duplicate the work RICS carry out in this regard. Mad.