House prices 'to increase' in pre-Hips rush

Posted: 21 May 2007 10:12:54 GMT

House prices will continue to rise in the coming weeks as sellers and buyers alike rush to finalise property deals ahead of the introduction of Home Information Packs (Hips) on June 1st, according to new research.

House prices will continue to rise in the coming weeks as sellers and buyers alike rush to finalise property deals ahead of the introduction of Home Information Packs (Hips) on June 1st, according to new research.

A study by property company Your Move suggests that there will be increased activity in the property market towards the end of May and the beginning of June, pushing prices up.

Sellers are apparently looking to avoid paying the extra costs associated with Hips - likely to cost at least £400 - that will be incurred if putting the property on the market is left until June.

"Our model forecasts that [actual house prices] will continue to rise by around 1.65 per cent in May, with growth in new property coming onto the market driven by the rush to beat the introduction of Hips in June," Your Move's David Newnes said.

He added that recent interest rate increased seemed to have had little impact on the property market, with a strong economy and general shortage of property helping maintain demand from buyers.

"The reality is property remains a very good long term investment," Mr Newnes added.

"Compared to the days of 15 per cent interest rates in 1991, we are living in an affordability nirvana."

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