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gruffydd

Hips Were Set To Trigger A 30% Fall In House Prices

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http://www.in2perspective.com/nr/2006/07/h...ouse-prices.jsp

Home Information Packs (HIPs) would have triggered a crash in the property market that would have resulted in up to £1.35 trillion being wiped of the value of UK homes. This is the real reason for the Government’s U-turn on HIPs. It is believed the Treasury was growing increasingly concerned that the inclusion of Home Condition Reports were likely to plunge the housing market into chaos, knocking as much as 30% off house prices and plunging the UK economy into recession.

Edited by gruffydd

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http://www.in2perspective.com/nr/2006/07/h...ouse-prices.jsp

Home Information Packs (HIPs) would have triggered a crash in the property market that would have resulted in up to £1.35 trillion being wiped of the value of UK homes. This is the real reason for the Government’s U-turn on HIPs. It is believed the Treasury was growing increasingly concerned that the inclusion of Home Condition Reports were likely to plunge the housing market into chaos, knocking as much as 30% off house prices and plunging the UK economy into recession.

higher utility bills,petrol prices and such will do just fine thanks....the removal of HIPs is not a complete backdown......only the bit requiring a structural survey(at sellers expense) has been removed,other requirements such as energy conservation are still there.

pretty sensible actually......if you were buying would YOU believe the sellers survey or would you rather get your own?

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If you were a seller, and you did a survey, and you were believed - could you be sued? (Years later, after your sale is long forgotten, except by the buyer.)

.....quite probably,you can sue pretty much anybody for pretty much anything these days.

...like trying to sue McDonalds coz some fat git scoffed too many burgers.

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Nothing l read on that link gave any support to the precipitate a crash theory. If anything the paragraph about only being able to HIP 150,000 homes per month would have left to a false suppressed supply which would SURELY have meant higher prices as buyers competed for fewer homes. Yes l understand that those buyers may themselves be delayed from becoming buyers due to HIPing their own homes but with the upsurge in investment/btl crapola the net effect would have been a more reduced supply vs demand.

Also l note that the idea of a simple 1k HIP might cause an HPC is rather indicative of how fragile the whole pack cards is. This flood of sellers to avoid a 1k HIP charge is rubbish. People that sell a house will almost always be buying another - STR is a rarity. I dont remember transaction volumes going up suddenly meaning prices will crash.

So is this a case of if people start looking too closely without speculatively over-priced kite flying sales to make out things are on the ever-up it will precipitate a feedback of depressed prices???

Can anyone explain?

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http://www.in2perspective.com/nr/2006/07/h...ouse-prices.jsp

Home Information Packs (HIPs) would have triggered a crash in the property market that would have resulted in up to £1.35 trillion being wiped of the value of UK homes. This is the real reason for the Government’s U-turn on HIPs. It is believed the Treasury was growing increasingly concerned that the inclusion of Home Condition Reports were likely to plunge the housing market into chaos, knocking as much as 30% off house prices and plunging the UK economy into recession.

As I keep trying to tell people there is unlikely to be a U-turn or scrapping of HIPS.

The original press release simply said that the HIPS will be introduced in June 2007 (and will be compulsory) but will not contain the condition report although they will contain an energy efficiency report.

The government is not abandoning this scheme although I think they would prefer to introduce it by stealth adding bits to HIPS a little at a time - that is their style.

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So HIPS was as well managed as the Dome!

The government had an opportunity to really change things but has failed and performed a U-turn. What a complete waste of public and private money this is and just indicative of Labour.

The economy is so well managed that this would have plunged us into recession. WTF! If this is true then this explains all the prevarication over interest rates. We now know that the property market is the only thing propping up the whole economy. Nice to know isn't it?

All these morons had to do was copy the American house selling process. In the USA once your offer is accepted you buy the house (unless there is some major structural problem or something not disclosed). In England a buyer can pull out at any time, sometimes 2-3 months after the offer!

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HIPS by putting a cost/barrier on the seller would have decressed supply of properties coming on the market. The market for property and therfore prices is a sentiment driven supply, demand risk-reward equation being made every day by amatuers. Any withdrawl of HIPS is good for supply therfore it will help dampen demand/price.

Pablo Silver or Lead?

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HIPS by putting a cost/barrier on the seller would have decressed supply of properties coming on the market.

As we've discussed many times before, pretty much the only people who would have been put off selling by HIPs would be the time-wasters who had no interest in selling in the first place: and they're irrelevant to the market.

Are you seriously trying to claim that Joe Bloggs wouldn't have put his his 300k 'executive apartment' on the market for the sake of 1k in HIPs fees?

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Guest Bart of Darkness

In2perspective.com and HIPS, you pays yer money and takes yer choice:

Philip Davies, Chief Executive of Linden Homes: "Finally the Government has accepted that the introduction of HCRs on a mandatory basis next June would have crippled the housing market and led to a shortage of supply, fuelling an increase in selling prices.

Link.

OR

Home Information Packs (HIPs) would have triggered a crash in the property market that would have resulted in up to £1.35 trillion being wiped off the value of UK homes.

Link.

:blink:

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YES

I've had two periods as an EA and many years ago ran 2 branches of Connells. There are 2 types of seller discretionary and non discretionary. I am not for a moment suggesting HIPS would have dettered people who wanted/needed to sell their properties from coming to market. Probably 25% of properties that are taken on as instructions in the UK and sell (complete) start as dicretionary "thank's for comming round to do your free valuation but we not acctually going to sell yet" " Of course not, what a lovely home you have here". HIPS would have stopped many of these properties coming on the market or at least delayed them as they bedded in. HIPS would have substantial reduce the volume of property on the market at a time when new builder inventories are climbing and in the areas I'm monotoring the volume of properies for sale and time on the market are both going up. No HIPS, 2x.25% increases in I/R with more to follow and 3 years of price froth will start to blow off the top.

Pablo Sliver of Lead?

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Call me cynical, but isn't the back-down simply designed to keep the home-owning middle class happy, particularily in the 'swing' constituencies?

Imagine the next local/general election results if Mr & Mrs Smith had 20% wiped-off their (absurd) house price because of HIPS.

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Call me cynical, but isn't the back-down simply designed to keep the home-owning middle class happy, particularily in the 'swing' constituencies?

Imagine the next local/general election results if Mr & Mrs Smith had 20% wiped-off their (absurd) house price because of HIPS.

Sounds about right. NuLabour are unpopular in the country as indicated by recent polls. The economy is on a knife edge and without the continuing HPI-MEW recession will follow and Gordon & Co. will be unelectable. The housing market is key to the future of NuLabour and especially Gordon whose entire reputation stands on people's sense of wealth that has come from 175% inflation in house prices since 1997. Take that wealth away and its been almost 10 years of disaster with higher taxes, highest unemployment since 1997, twin deficits, erosion of freedoms (attempted ID card laws), collapsing NHS, rising sleaze (Two Jags, Peerages for donations, sexual scandals etc), disastrous immigration policies with unknown numbers of illegal immigrants and vast numbers of legal immigrants pressuring housing and the declining job market, collapsing manufacturing and retail and on and on.

If people see their house prices and ability to MEW taken away NuLabour are finished.

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Good morning HPC,

I am more than happy to provide you with a copy of our report on HIPs and their impact on the market. I dont seem to be able to attach it to this post due to the file size. If you email me - hips@in2p.co.uk - then I can happily forward you a copy. (Perhaps the webmaster would like to post it somewhere?)

Pages 18-23 in particular will be of interest to you as they explain why the market is currently 30% overvalued. Our view has always been that HIPs were a sufficient but not a necessary trigger for a correction in house prices.

Regarding Bart of Darkness's point about our coverage. I can understand why he is confused. However, In2Perspective was set up to provide unbiased and independent news - that means we often report what both sides of an argument are saying. Our own analysis on the market is provided in our free newsletters (you can register on the site to receive them) and reports (eg. HIPs In2Perspective).

yours,

Nick Booker

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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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