House price rise claim over Hips

Posted: 30 Apr 2007 11:41:22 GMT

The National Association of Estate Agents (NAEA) has alleged that the introduction of the government's mandatory Home information pack (Hips) scheme in June will see a large rise in house prices.

The National Association of Estate Agents (NAEA) has alleged that the introduction of the government's mandatory Home information pack (Hips) scheme in June will see a large rise in house prices.

It bases this view on the notion that the need to pay to obtain the packs will deter speculative sellers from putting their homes on the market.

These sellers are people who begin without a clear intention to sell but can be persuaded if they check out how much they might be offered for their home and receive a satisfactory proposition , the organisation states.

It says 20 per cent of home sales begin this way and if these are deterred it will see prices rise as the supply of available homes falls.

The NAEA is opposed to Hips and has called for delays in its introduction.

However, consumer group Which? spoke out in support of Hips, arguing it would have a positive impact on the selling process.

A Which? spokesperson told the London Evening Standard: "The Hip ought to make buying a property a more efficient process and reduce the astonishing failure rate that means a third of accepted offers come to nothing."

"Fewer failed transactions means less wasted money," he added.


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