Thursday, April 19, 2007

Moneynet warns of ‘double whammy’

Rise in interest rates plus introduction of HIPs could put brakes on housing market

A rise in the Bank of England base rate rise in May, together with the introduction of Home Information Packs in June are likely to put the brakes on the property market, has warned...Most market commentators are now forecasting a 0.25% rise following this week's news of the leap in inflation figures, says

Posted by converted lurker @ 12:22 PM (683 views)
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3 thoughts on “Moneynet warns of ‘double whammy’

  • Can someone clarify the thinking on this HIP issue for me please, cos I’m missing something here.

    Do people really sell property just for a laugh? Surely they sell property because they have to (falling into mortgage arrears, someone’s died and the estate needs to liquidate the asset, have to re-locate because of job or family reasons) or because they want to (just want the money for something else, fancy a nicer place, think the market has peaked and want the best return)?

    I suppose some people who were considering trading-up might have second thoughts if it’s going to cost a bit more than they originally thought, but then if you’ve got the money to trade-up will an extra few quid on a HIP bother you that much, I wonder – it should save you some money on surveys for your new purchase anyway. Everyone else has no choice – if you’re in arrears, you must sell even if you have to pay for a HIP; if you’re the deceased’s estate, you must sell even if you have to fork out for a HIP; if your job has moved, you must sell even if you have to pay for a HIP; if you think your BTL investment has peaked, you’re going to lose a lot more money waiting for the crash than you are paying for a HIP now; etc, etc.

    I can see that some people might rush to sell before HIPs come in, if they were planning to do so anyway, but I can’t see it having much impact on whether people market property or not in the future, surely?

    Which means I must have missed something because the VIs seem very anti- and I can’t see why. Won’t everyone just push up asking prices to cover the cost of HIPs anyway, which means the Estate Agent’s 2% gets a bit bigger? Is it that they think affordability is so stretched now that even a few extra £hundred on property prices will be the straw that breaks the camel’s back or what??

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  • I was an estate agent for 18 years and people are quite blase about putting their house on the market ‘cos it doesn’t cost(or didn’t)….they then start looking themselves and begin getting into it a bit more.When the get an offer you find out who is serious.

    I feel that the market needs an excuse to 9/11 was a catalyst for a stock crash which was gonna happen anyway.

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  • converted lurker says:

    Taffee that is the major concern in a nutshell, not the cost of the HIP but the eradication of time wasters.

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