Hips Rein In Rising House Prices

[It is different this time]

Hips delay

http://money.guardian.co.uk/houseprices/st...2105680,00.html

The planned introduction of Hips on June 1 saw more properties coming on to the market as sellers rushed to market their property without having to commission a pack. Consequently, average stock levels per estate agent branch rose to a two-year high of 67 in May from 61 in April.

Having more properties on the market should lead to a fall in prices, although it remains to be seen how housing supply will be affected over the coming month by the delayed Hips. As it stands, properties with four bedrooms or more will need a pack from August 1, with other properties being phased on to the scheme over the coming months.

Miles Shipside, commercial director of Rightmove said: "The rush to beat the planned Hips deadline appears to have attracted some poorly motivated sellers to the market. They are chancing their arm at some fairly bullish prices considering there is now a lot of property up for sale.

"Their main motivation will have been to save some money avoiding a Hip, rather than being realistic on price because they had seen a property they desperately wanted to buy.

"More property available is good news for buyers, as sellers that need to sell urgently will have to drop their price. Ironically, those that sought to save a few hundred pounds by avoiding Hips have contributed to a glut of property on the market, which will actually cost them money as they will have to discount their prices to sell."

Overall, the Rightmove survey supports the view that house prices are now coming off the boil due to increased affordability pressures and higher interest rates.

Significantly, the Bank of England reported that mortgage approvals fell back to 107,000 in April, which was the equal lowest level since September 2005 and down from a peak of 128,000 in November.

Are those homeowners really stupid or just greedy?

Why would you rush to sell £300K property just to avoid £500?

If I were to buy 4-bed home after 1st August I would make sure to go for the one that provides HIPs. The more money people spend, usually, the more attention they pay. Anyway nice to see Hips causing some panic already. Bring it on

[Wad]

Are those homeowners really stupid or just greedy?

Why would you rush to sell £300K property just to avoid £500?

If I were to buy 4-bed home after 1st August I would make sure to go for the one that provides HIPs. The more money people spend, usually, the more attention they pay. Anyway nice to see Hips causing some panic already. Bring it on

They may have brought their sale forward a month or two because of HIPs but surely the reason that the stock of houses for sale is going up is that no one wants to buy at these inflated prices. Even London is looking very shaky.

[Greenstuff]

Hello.

Do you think that's really the case?

That people are really rushing to sell to avoid HIPs, or is it being used as an excuse for the glut of properties coming on in order to avoid panic?

Or is that a really obvious and therefore maybe slightly stupid thing to say?!

[@contradevian]

Hello.

Do you think that's really the case?

Nope!

[Jay76]

Hello.

Do you think that's really the case?

That people are really rushing to sell to avoid HIPs, or is it being used as an excuse for the glut of properties coming on in order to avoid panic?

Or is that a really obvious and therefore maybe slightly stupid thing to say?!

Given that the report is provided by Miles Shipside, commercial director of Rightmove, it should be taken with a pinch of salt.

Imagine going to buy an old nail from a used car salesman..... "oh yeah its a great car, one lady owner and she was a nun so she left it in the garage." Would you trust him? no? Well why trust anyone with a vested interest in property?