Insurance News Archive

Hips not helping housing market, report says

Home improvement packs (Hips) are doing little to stop "gazumping" and "gazundering" in the property market, according to an expert.

Gazumping - the act of a buyer being pushed out by a late, higher bid, and gazundering - the last moment dropping of a price by a buyer to secure the property for less are becoming more common in the current market, it has been revealed.

Lucian Cook, director of residential research for Savills, said it was because "buyers just still aren't using them [the packs]," preferring to use surveyor's reports instead.

Buyers, she said, were putting themselves at risk of not getting the mortgage evaluation they had anticipated.

She added, sellers may say, to the act of gazundering: "If you're going to play that game, I simply won't sell my property to you.

"Sellers just need to weigh up the options - whether or not they've got other offers."

Hips were compulsory for any property marketed from the 14th of December of afterwards.

It is hoped Hips packs will protect sellers from unnecessary delays to sales and provide buyers with free, essential information about the property they wish to buy.

30 Apr 2008