Insurance News Archive

Hips help create unique price rise

Property prices increased by a record margin in March, according to the latest Rightmove figures which have analysed house values since 2002.

Among the reasons attributed to the record rise, £8,307, was the forthcoming introduction of Home Information Packs (Hips), just part of a "unique combination" of reasons for the five-year high.

According to Rightmove's commercial director, Miles Shipside, the introduction of Hips was forcing estate agents to lean on sellers to get deals pushed through before they would have to pay the extra costs, estimated to be in the region of £500.

"On the cusp of the most significant legislative change to the home moving process the market has ever seen, it is of huge interest how home movers and those in the industry will react," he commented.

"The early indications are that the spring timing of the run in to Hips implementation, combined with the current market conditions, will lead to a distortion of traditional market forces over the coming months."

The 3.6 per cent increase in property prices means the average home in the UK now costs £236,490.

16 Apr 2007