Thursday, November 8, 2007

Are they seriously blaming an impending collapse on a 300 quid survey?

NAEA survey claims HIPS having adverse affect on house sales

A survey of members conducted by the National Association of Estate Agents (NAEA) has produced the largest response ever to one of its surveys with over 1000 replies indicating what a contentious issue HIPs still are.Over the past 10 days members were asked to compare the market this October to the same time last year. The results show that 83% of agents have found that requests for market appraisals have dropped with 9% of respondents finding a reduction of more than 50%. When asked about the change in the number of instructions for 3 or more bedroom properties, a staggering 76% stated that they had seen decreases in excess of 10% of which 46% had seen a drop in excess of 30%. This compares with a much smaller reduction for 1 or 2 bedroom properties with 37% of respondents finding a dr

Posted by converted lurker @ 12:19 PM (1109 views)
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15 thoughts on “Are they seriously blaming an impending collapse on a 300 quid survey?

  • dohousescrashinthewoods says:

    So the picture we’re seeing is a market seizing up, but BTLs furiously offloading 1-2 bed hutches?

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  • There has to be a sacrificial lamb – something beyond everyone’s control that can be blamed (a la Northern Rock) – ‘the crash would never have happened if it wasn’t for – (insert blame figure here – them pesky kids? HPC.co.uk?)’
    This allows everyone to put their heads back in the sand and carry on, consience clean.

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  • The phased introducion has had an effect on the market. When HIp’s was first introcuced the number of properties with 4 bedrooms and above coming to market greatly reduced. Several months later, about a few weeks ago, the number of such larger properties coming to market increased greatly, reflecting the number of sellers who were initiallty put off selling there properties but eventually decided to sell anyway. The same is now happening with 3 bedroom homes (great reduction in the number coming to market). Now if this follows the trend that the larger properties followed, ie where after a while the owners will then decide to sell the property anyway, we may well see the number of such properties available on the market in about next January greatly increasing. Now if property prices are declining slightly/stabilising at present, what will happen when we get to about January, when it is likely that a large increase in supply of properties enter the market?????????????????

    I am thinking, big price reductions.

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  • planning4acrash says:

    It’ll be really interesting when capital gains tax changes and people who bought in the last 5yrs will see tax reduced from 40 to 18%. Chickens won’t come to roost until then.

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  • planning4acrash says:

    It’ll be really interesting when capital gains tax changes and people who bought in the last 5yrs will see tax reduced from 40 to 18%. Chickens won’t come to roost until then.

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  • Rollonapril2007 says:

    i agree – i think that my username says it all!

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  • planning4acrash says:

    There are two sides to the coin on this one, and hips cost more than they seem to, because upgrading a house to achieve a good energy rating or having to deal with other issues brought up by the survey should cost cash. HIPS should suppress the for sale prices because less will put houses for sale for purely valuation reasons (to test the market) so prices could become more realistic.

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  • I’m always amazed that supposed ‘property experts’ would consider a cost of 300 vs the potentials gains from owning property (lets just say 6% on 240k) actually makes any difference.

    Of course there is extra cost to consider if your property is not in a condition to sell, in which case if HIPS are a problem for you, you previously would have liked to sell a property not in a condition to sell. Perhaps that is the real reason these ‘property experts’ don’t like the idea.

    I think HIPS are excellent, as they promote professional valuations and build in ‘due diligence’ for potential home owners. And if I have to pay 300 quid for each house I seriously consider then I won’t consider many. This system should actually promote trade in the property market by reducing admin costs. Unless the majority of buyers don’t do ‘due diligence’ and try to value the house themselves…. That’s another issue.

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  • HIPS ARE IRRELEVANT!!!!!

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  • HIPS have been the housing industry’s excuse from day one.

    That much is a given.

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  • [email protected]

    Why do you think HIPs are irrelevant, do you not agree that they have caused confusion in the market stats issued over the last few months?

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  • is this the same david who kept saying never never will a crash happen.:now i know sentiment is changing not long now people.

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  • I was told that the estate agent business in the south west UK as completely stalled, by the husband who’s wife works in the industry ( about to get the sack). yesterday, I had a doctor visit that had just had his house valued, it was the value was very substaitally below equivelent property advertised in the local papers. When he questioned this, the agent said: ‘Well that how things are now’.

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  • I have a freind whos lives in the house his parents have bought (as a pension) i know for a fact they are not selling until the capital gains tax is reduced, do you think there might be a glut of properties comming on to the market then?

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  • So I paid £350+ for my HIP before putting the place on the market. I subsequently received a phone call from the HIP Provider telling me that the house wasn’t registered. I said I knew. He said I would have to instruct my solicitor to prepare an Epitome of Title and send it to them – for which I would have to shell out more money.
    Some weeks later I received and accepted an offer for the house. The buyer commissioned (and subsequently received) a full survey, and is keen to proceed.

    Guess what. I am still waiting for the HIP. So much for speeding up the house sale process!!!

    What a complete and utter farce. Unnecessary expense and duplication of work. Still, the taxman gets another opportunity to grab some VAT.

    Thank you Yvette.

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