Hips influence underestimated claims agent

Posted: 06 Dec 2006 17:54:32 GMT

Home information packs (Hips) will have a bigger than expected influence on the way that the property market works when the are launched next year, estate agents have said

Home information packs (Hips) will have a bigger than expected influence on the way that the property market works when the are launched next year, estate agents have said.

National estate agent haart has predicted a rush of sales in the first half of 2007 as people attempt to get deals completed before the packs are launched in June.

The agent claimed that desperation among sellers to avoid the cost of Hips will stoke price inflation to ten per cent, before falls to four or five in the latter part of the year.

"We expect a high level of activity to carry into the new year pushing the average house price up by as much as ten per cent in the first six months," said Paul Smith of haart.

"However, with two interest rate hikes this year, affordability constraints have been brought to the fore and in many areas in the UK we are seeing a very modest growth."

The long-term effect of the introduction of Hips will have a minimum long-term effect on the housing market however, haart said.

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