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Crash Bandicoot

Hip To Reduce Number Of Properties On The Market By 1/3?

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Hi there! This is my first post and I am yet another long-term lurker. I was speaking with someone last night who informed me of a report on the news that cited the HIP or Home Information Pack was going to make people stay put rather than sell, and that this would reduce the number of houses coming onto the market 1/3!?!?!

I'm not particularly well informed on the ins and outs of the HIP, but this sounds like VI blag to me......anyone care to comment on this?

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Hi there! This is my first post and I am yet another long-term lurker. I was speaking with someone last night who informed me of a report on the news that cited the HIP or Home Information Pack was going to make people stay put rather than sell, and that this would reduce the number of houses coming onto the market 1/3!?!?!

I'm not particularly well informed on the ins and outs of the HIP, but this sounds like VI blag to me......anyone care to comment on this?

Well even if it did - demand would presumably be reduced by the equivalent amount. If someone isn't selling, then they're not going to be buying either. There could be a rush to sell before the HIPs deadline resulting in temporary oversupply and hence reduced prices.

The transition period is going to be interesting.

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The transition period WILL be extended as it cannot be implemented.( lack of surveyors, Need for extra surveys.... etc )

The ODPM will then cancel the whole thing until a later date to prevent themselves looking stupid.

Does ANYBODY think it will work !!! ???

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If you pick apart the spin here, what you find is this. 1/3 of sellers will be put off selling by HIPs. Suppose that's true. Who are these sellers who will be put off? The ones who don't want to stump up the £600 - £1000 it costs for the HIP, obviously. Why don't they want to pay this money? Because they are not really committed to moving house. That is, they are just putting their property in the EA's window to "test the market".

These people were never really "in the market" in the sense that they were competing with other sellers. They only ever ended up selling in the past because the market was rising and eventually met their expectations. So, HIPs will not remove them from the market, because they were never in the market in the first place.

frugalista

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If you pick apart the spin here, what you find is this. 1/3 of sellers will be put off selling by HIPs. Suppose that's true. Who are these sellers who will be put off? The ones who don't want to stump up the £600 - £1000 it costs for the HIP, obviously. Why don't they want to pay this money? Because they are not really committed to moving house. That is, they are just putting their property in the EA's window to "test the market".

These people were never really "in the market" in the sense that they were competing with other sellers. They only ever ended up selling in the past because the market was rising and eventually met their expectations. So, HIPs will not remove them from the market, because they were never in the market in the first place.

frugalista

and the effect of this will be: sheeple increase their asking prices because there is a shortage of supply in the market - so bloody predictable.

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Yes, also these testers not really being interested in selling up are probably quite happy for their property to be at the bleeding edge of asking price because it doesnt matter if no-one is interested. Therefore this loss of a third may well do some interesting things to spurious stats like the recent "rising asking prices".

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I just don't see why HIPs are a bad idea.

The surveyors don't like them because it's one survey per house, rather than a possibly unlimited amount.

The sellers don't like them because they have to pay for them - but surely that had to pay for one on the house they were buying anyway?

The sellers get the chance to address any issues before the sale to either adjust the sale price to take into account the failing roof, or to fix it to achieve the best price.

FTB's like them because it reduces their costs, then makes practically no difference on subsequent moves.

The only people who don't like them are those who have no real intention of selling, unless a ridiculous offer comes along.

There must be loads of positive effects from HIPs for the housing market, but those who stand to lose the most from them seem to have the loudest voices.

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I just don't see why HIPs are a bad idea.

The surveyors don't like them because it's one survey per house, rather than a possibly unlimited amount.

The sellers don't like them because they have to pay for them - but surely that had to pay for one on the house they were buying anyway?

The sellers get the chance to address any issues before the sale to either adjust the sale price to take into account the failing roof, or to fix it to achieve the best price.

FTB's like them because it reduces their costs, then makes practically no difference on subsequent moves.

The only people who don't like them are those who have no real intention of selling, unless a ridiculous offer comes along.

There must be loads of positive effects from HIPs for the housing market, but those who stand to lose the most from them seem to have the loudest voices.

Great post. You should send this to all media outlets!

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I have a slighly differing OP on the hipps crap

In the long run its a great idea I think and I believe the gov have got it right

However..its a big however, the timing could not be worse

We will see people that are going to sell flood the market pretty soon to avoid hipps..convinced that they can cash in on the current price lunacy. This is yet another trigger for a massive collapse, people will have no faith in the system and the process..this does even count the rising fuel costs and council tax,

Come in July next year, collapse this winter : FTB's will be pissing themselves

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and the effect of this will be: sheeple increase their asking prices because there is a shortage of supply in the market - so bloody predictable.

No, I don't think it will have that effect.

Imagine you have a market place where sellers haggle with buyers, sellers compete against sellers by undercutting, and buyers compete against buyers by outbidding.

In this case the price of the item being traded is determined by the ratio of supply (sellers) to demand (buyers). Let's say the price hovers around £50.

Suppose a bunch of new "fussy" sellers turn up, whose attitude is "I will sell my item for £100 but if I do not get that price I will refuse to sell and walk away". Clearly they will not affect the market price, because they refuse to compete with other sellers.

You could impose a charge on sellers entering the market place. The fussy sellers might then not bother going to the market at all. But this would not affect the market price because the fussy sellers were not going to undercut other sellers in the first place.

frugalista

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I just don't see why HIPs are a bad idea.

The surveyors don't like them because it's one survey per house, rather than a possibly unlimited amount.

The sellers don't like them because they have to pay for them - but surely that had to pay for one on the house they were buying anyway?

The sellers get the chance to address any issues before the sale to either adjust the sale price to take into account the failing roof, or to fix it to achieve the best price.

FTB's like them because it reduces their costs, then makes practically no difference on subsequent moves.

The only people who don't like them are those who have no real intention of selling, unless a ridiculous offer comes along.

There must be loads of positive effects from HIPs for the housing market, but those who stand to lose the most from them seem to have the loudest voices.

Nicely summed up Adam!

btp

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Yes, also these testers not really being interested in selling up are probably quite happy for their property to be at the bleeding edge of asking price because it doesnt matter if no-one is interested. Therefore this loss of a third may well do some interesting things to spurious stats like the recent "rising asking prices".

Exactly.

frugalista

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I think your talking about the Trev McDonut program.

I personally am all for HIPs in principle, the only issues I have is will there be enough surveyors? And what if someone produces a dodgy survey, can you sue the surveyor (like you can today)?

The EAs on the program were trying their hardest. I had to laugh how the EA showing the couple around the house said something along these lines:

"I have to point out the crack in the window..."

I am sure the pack would be given to anyone at the end. I very much doubt an EA pointing out the points on a viewing. Any good salesman would not bring up any bad points!

Edited by Jason

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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