Insurance News Archive

First-time sellers to suffer most from Hips

First-time sellers are expected to suffer the most after the introduction of the controversial home information packs (Hips), according to latest reports.

Research by the National Association of Estate Agents (NAEA) shows that struggling first-time sellers are likely to be hit the hardest when Hips are introduced next year.

When Hips are introduced in June 2007, homeowners will have to pay the fee for their Hip when they remove their property from the market.

Figures show that of those currently in the first-time seller bracket (those aged between 24 and 34), 76 per cent said that withdrawal costs associated with Hips would put them off.

A further 80 per cent of respondents in the 18 to 24 age bracket said that these costs would theoretically put them off putting their property on the market.

"With the anticipated cost of the HIP set at between £600 and £1,000, plus VAT, and high levels of stamp duty to contend with, many first-time sellers may find that the next step up the ladder is simply too much of a stretch for them, and be forced to stay put," comments Peter Bolton King, chief executive of the NAEA.


© Adfero Ltd

13 Apr 2006