spoon Posted February 22, 2006 Share Posted February 22, 2006 HIPS is an acronym for the new house information packs that vendors will be obliged to supply come Jun 2007. what impact, if any, will it have on house prices. i have read some analysts comment that reduced supply of houses will fuel price inflation. i disagree. up to 30% of properties for sale are believed to be by vendors wishing to 'test the waters'. if that 30% disappears the average asking and actual price surveys will surely collapse since the statistics will be dominated by vendors that REALLY WANT TO SELL. also will vendors be obliged to renew their packs and pay a second and third time say every six months? we all know of houses for sale that don't budge for for months and months, even years, with a stubbornly high price tag. these houses will disappear from the stats. Quote Link to comment Share on other sites More sharing options...
AgeingBabyBoomer Posted February 22, 2006 Share Posted February 22, 2006 I tend to agree - It will deter speculators and those testing the waters - they only test because they think they might make a fast buck. This may reduce the numbers of properties for sale, but it will discourage aspirational pricing. The 6 month renewal period should also help make sure that properties are priced to sell, rather than stick on the market until some fool pays asking... I think we only need witness the frenzied attempts by the VI's to discredit the plan to realise what might really happen... ABB Quote Link to comment Share on other sites More sharing options...
ILikeBigBoobs Posted February 23, 2006 Share Posted February 23, 2006 also will vendors be obliged to renew their packs and pay a second and third time say every six months? No they wont. Generally anyway. Stop making shit up! Quote Link to comment Share on other sites More sharing options...
teddyboy Posted February 23, 2006 Share Posted February 23, 2006 (edited) What impact, if any, will it have on house prices. i have read some analysts comment that reduced supply of houses will fuel price inflation. Oh FFS!!! If a dog shats in the street it will make houses rise!! They will use anything to justify their greed. There is nothing to support these prices. You cant say demand coz no-one is buying. You can argue that IR's are low but a mortgage is 25 years not this year! Its all a load of BS coz they will show that what they are selling is a piece of shit, not a crap house that has magnolia on the walls to hide it. On HTBAPD you seen that they just botched houses together and cut corners which the future buyer will then have to pay out to get right! That is not right. If you see a product in a staore and the box is damaged then it will be in the bargain bin to compensate for it. You know exactly where you stand at POS! i disagree. up to 30% of properties for sale are believed to be by vendors wishing to 'test the waters'. if that 30% disappears the average asking and actual price surveys will surely collapse since the statistics will be dominated by vendors that REALLY WANT TO SELL. Well I disagaree with you. IF someone REALLY wanted to sell their house they would price it and drop it if necessary until it was sold. A house is worth what someone is prepared to pay for it. If an EA tells you £200k and it makes £160K then you have not lost a penny. You just had an EA that was optimistic or shit at his job. If you feel pissed that it achieved 40K less than the EA then vent the anger at them! also will vendors be obliged to renew their packs and pay a second and third time say every six months? we all know of houses for sale that don't budge for for months and months, even years, with a stubbornly high price tag. these houses will disappear from the stats. see point 2 TB Edited February 23, 2006 by teddyboy Quote Link to comment Share on other sites More sharing options...
Golden Shower Posted February 23, 2006 Share Posted February 23, 2006 Surely if 30% of vendors take their houses off the market, that will constrict supply more and push prices up? The remaining vendors will probably just add the cost onto the house. Quote Link to comment Share on other sites More sharing options...
djmgw Posted February 23, 2006 Share Posted February 23, 2006 But 30% fewer vendors also means 30% fewer buyers - no? Those sellers would also have bought. Therefore 30% fewer TRANSACTIONS. On top of 30% fewer TRANSACTIONS last year. Now we see the reasons EAs don't like the idea. The price issue is just scaremongering. djmgw Quote Link to comment Share on other sites More sharing options...
newbie Posted February 23, 2006 Share Posted February 23, 2006 If you have a look at the Telegraph article, you can clearly see what the VI's will pin any crash on. The introduction of HIPs will be to blame, of course! http://portal.telegraph.co.uk/money/main.j...2/ixperson.html Quote Link to comment Share on other sites More sharing options...
SarahBell Posted February 23, 2006 Share Posted February 23, 2006 How are estate agents going to market it? Will they ask for money up front or will they add it onto fees and then get the money off people if they decide to withdraw from the market? I think how its implemented will be the important thing. If its seen as an expense prior to sale this will have an impact much more than sticking it on with % fees at sale. Quote Link to comment Share on other sites More sharing options...
StainlessSteelCat Posted February 23, 2006 Share Posted February 23, 2006 (edited) Difficult to predict. Hopefully it will reduce the speculative seller who is testing the water - as neither they or the EA will want to shoulder the cost on a house that is less likely to sell. A good thing in my opinion - as I don't want to waste my time viewing a property the seller isn't keen to sell. So there should be more houses that are priced to sell according to the judgement of the EA (although whether that's at a realistic price or not is an entirely different matter). This may drive asking prices down in the medium term, it may keep them in the same place or drive them up depending on local demand and supply. I think the lead up to its introduction will probably result in a larger number of properties coming onto the market to avoid it - although these could then be sitting on the market for ages due to unrealistic pricing. I think this pre-HIP blip will balance out any possible reduction in the number of properties coming on the market for at least a year or so after it's introduced. So my guess is that the net effect will be virtually zero. Personally I'm looking forward to inevitable panic to get houses on the market in the month or so before it's introduction (about the time the Daily Mail starts screaming about a unfair tax on selling property). Edited February 23, 2006 by greencat Quote Link to comment Share on other sites More sharing options...
Marina Posted February 23, 2006 Share Posted February 23, 2006 also will vendors be obliged to renew their packs and pay a second and third time say every six months? No they wont. Generally anyway. Stop making shit up! Yes they will, the packs are time limited. What use is a Home Condition Report that is nine months old? The house could have started subsiding in that time. What use are searches that are nine months old. An application for a new petrol station next door might have been put in. This is from www.splintacampaign.co.uk * The pack has no shelf life. Because some of the information to be contained in it is date sensitive (e.g. local authority searches), in a slow market the pack will need to be updated at further expense to the seller. * The Home Condition Report in the pack will not have a shelf life but government says that 'it should not be more than three months old at the time marketing commences'. SPLINTA says that no responsible estate agent, surveyor or lawyer would recommend a purchaser to rely on such a potentially outdated report. Quote Link to comment Share on other sites More sharing options...
Kam Posted February 23, 2006 Share Posted February 23, 2006 Is there any requirement in the HIP that could help keep prices down ie an estimate on rebuild cost - for house insurance Energy effiecency report - boiler/CH/insulation - List previous sale prices Planning permision granted with last 5 years Date when first issued - indicate how long its been on market Independant market Valuation - stop thoses EA's ramping the price up with uneducated guesses for area: Crime stats Council tax schools Quote Link to comment Share on other sites More sharing options...
gilf Posted February 23, 2006 Share Posted February 23, 2006 (edited) But 30% fewer vendors also means 30% fewer buyers - no? Those sellers would also have bought. Therefore 30% fewer TRANSACTIONS. On top of 30% fewer TRANSACTIONS last year. Now we see the reasons EAs don't like the idea. The price issue is just scaremongering. djmgw Exactly people keep mentioning the supply word without it's twin borther demand. One doesn't move the market significantly up or down without the reverse happening to the other. A lot of people on here have mentioned that a crash will only happen when the ratio of forced sellers in the market increases. Taking out 30% of the market pushes that ratio up dramatically, we will be left with a market which will be much more reactive to price movements. We currently have a hard core element of sellers who have no reason to move and therefore no reason to take a lower offer or drop the price. Edited February 23, 2006 by gilf Quote Link to comment Share on other sites More sharing options...
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