HIPs have been nothing but a huge disruption to a fragile market
Before the 24th May about-turn, property listings on propertyfinder.com had increased by more than 13% since the beginning of April - a figure well above the usual seasonal rise. This is largely due to people rushing to put their properties on the market in advance of the original1st June HIPs deadline. The number of properties coming onto the market has tailed off inthe last week, rising at under half the rate of the previous three weeks.
However, the surge in supply of properties means that average offer to asking price dropped to its lowest level in nine months. In contrast to previous months where sellers were achieving at or above the asking price, the HIPS surge in supply gave buyers more power, and they were able to get properties below the asking price, by 1.82% in May. Nicholas Leeming of propertyfinder.com commented:
Although it is good news for home buyers who have got their properties cheaper, the U-turn is hitting home sellers in the pocket. 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. A loss of almost £4,500 will feel like a real blow to these financially stretched home sellers.
Ordinary people are being forced to pay the price for the government’s dithering. To add insult to injury, a further rate rise is expected and this will add to the financial burden of people who are struggling to keep a foot on the ladder. HIPs have been nothing but a huge disruption to a fragile market.
