Insurance News Archive
Hips lead to "confusing" property market
UK property prices increased by the smallest margin of 2007, according to the latest figures, as the imminent introduction of Home Information Packs (Hips) have a mixed impact on the housing market.
Rightmove figures reveal a 0.4 per cent increase in house prices during May, taking the average property asking price to £237,361.
More sellers have been making their properties available to buy in order to beat the cost associated with the Hips introduction, although it is believed that the recent rise in interest rates has negated the trend.
As a result, the average estate agent's stock rose only marginally, from 59 to 61.
Miles Shipside, commercial director of Rightmove, commented: "It's all rather confusing at the moment. The future direction of the market is very hard to read with two external influences likely to coincide at once.
"Should Hips go ahead, policymakers should be wary of the effect on the housing market of a further interest rate rise at this sensitive time."
Hips have come in for mounting criticism in recent weeks as the June 1st introduction date approaches.
Last week, an attempt by the Conservative Party to prevent their implementation was unsuccessful.
21 May 2007
