Many tentative sellers are being deterred from putting their properties on the market by not only the cost of compiling an HIP, but also the considerable effort of completing the lengthy property information questionnaire, a new component of the HIP which is causing delays to its eventual production.
The shortage of stock in central areas has driven resurgence in prices and sellers would be pleasantly surprised to learn the price level they could achieve for their property, which may well lead to a sale.
James Hyman, partner for residential sales, said: "The inability to market a property as soon as we have taken an instruction is having a detrimental effect on the property market, discouraging potential sellers from testing the market and exacerbating the severe shortage of stock.
"I am certain we would have converted a large number of these cautious sellers into sales, as a result of the high demand for quality property from buyers.
"The new housing minister, John Healy, could stamp his authority by immediately scrapping this new rule and encourage stock to replenish now that demand is returning."
Major redundancies in local authorities are also resulting in a return to long delays for searches in central London now that the market is picking up and volume is starting to increase. HIPs are now taking much longer to compile thus slowing the whole sale process even further.
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