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Estate Agents call to scrap HIPS to aid recovery

Peter Bolton King, chief executive of the National Association of Estate Agents, said: “The housing market has seen a number of positive signs in 2009, particularly an increased demand for property and more sales being completed.

“However this will be unsustainable without a steady supply of housing. HIPs are controversial and in the NAEA’s opinion, relatively useless. That is bad enough, but these figures suggest that professional agents believe that they are actively harming the market.

“The figures are significant because of fears that housing market recovery is being stunted because increased demand for property among buyers is not being matched by a supply of houses for sale.

“The Government should look at scrapping these packs, at the very least until the market has recovered. At that stage they should be reviewed. The NAEA would be happy to offer its professional opinion as to the best way forward.”

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0 thoughts on “Estate Agents call to scrap HIPS to aid recovery

  1. Fans of the Hips or Home Reports will try claiming that they are helping sales as from March to May 53% of properties listed in Edinburgh sold. But we believe this is “new” property mentality anyway, new properties always have a better chance of selling than old

  2. Derek Jones says:

    I could not agree more. HIPs started the housing crash. They only benefit this dishonest government with its crazy schemes to raise hidden taxes. Actually, it shot itself in the foot on this one – the gain from these HIPs (over 50% of the cost goes in taxes) is vastly overshadowed by the lost Stamp Duties through falling sales. See my previous rant!

    But where was the NAEA when Prescott first mooted this idea? You should have stood up and been counted. Your best prospect now is to lobby Cameron and Osborne, ‘cos Brown and Wright only listen to each other. Thankfully we won’t have to suffer them much longer.

  3. When the HIPS came into force, many said the legislation would restrict the supply of properties.

    The concept behind it is fine, the problem is one of timing.

    I think the law should be as follows:

    Vendors must have all the deeds and legal paperwork in place before putting their property on the market.
    Once an offer has been made and accepted by the vendor, the vendor then commissions the inspection part of the HIPS. This must be completed within 2 weeks of the offer being made.

    Alternatively the purchaser may also commission their own survey report within 2 weeks of the offer being made.

    This way the legal aspect of the conveyancing can start from the time the offer has been made and everybody knows that the inspection report will be available within 2 weeks of the offer being accepted.

    A further 2 weeks is then given for negotiation between vendor and purchaser to adjust the asking price for any identified defects.

    Then it is up to both parties to agree a date for exchange of contracts.