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Hips change of heart hurts home sellers
06 Jun 2007
The government's decision to delay the introduction of Home Information Packs (Hips) has caused one property website to estimate an average £4,320 drop in property prices.
Asking prices for homes witnessed a steady increase in advance of the expected June 1st implementation of Hips as people looked to sell quickly before the deadline.
But with the government's turnaround, little more than a week before Hips were to be introduced, the number of properties on the market has dropped off, website propertyfinder.com found.
As a result, home buyers have benefited from greater bargaining power and asking prices have fallen to their lowest level in nine months.
"Although it is good news for home buyers who have got their properties cheaper, the U-turn is hitting home sellers in the pocket," propertyfinder.com's Nicholas Leeming explained.
"Supply has already tightened again and sellers who have rushed to sell but not yet purchased property may find the buyer/seller power shift reverses quickly, leaving them out of pocket."
It is the latest blow to homeowners who appear to be increasingly struggling in the wake of four interest rate rises since last August.
