Hips win vote

The introduction of Home Information Packs (Hips) has survived a last-ditch postponement attempt following a vote in the House of Commons.

Hips are due to become a mandatory part of the home-selling process from June 1st but opposition MPs, as well as a number of industry figures, oppose the packs in their current form.

Shadow foreign secretary William Hague, speaking during a debate in the Commons, described Hips as a “looming fiasco” and a “mistake”.

Tory Spokesman Michael Gove said that the introduction of Hips was “folly” and warned that the housing market will suffer as a result.

“They [Hips] will do nothing to take the strain out of home-buying and only add cost and complexity to the housing market,” he said.

“Ministers have botched this process from beginning to end. They have ploughed on regardless of the potential damage that they are doing to the housing market at an acutely delicate time.”

Hips are designed to reduce the number of home-selling transactions which collapse at the last minute, rid the process of gazumping and encourage homeowners to make their properties more energy efficient.

However, those who oppose their introduction say that they offer few benefits to consumers and, with each Hip costing between £400 and £600, add to the cost of selling a home.

Despite their victory in the House of Commons, by a majority of 72, Hips still face a potentially fatal vote in the House of Lords next week, as well as a legal challenge from the Royal Institute of Chartered Surveyors.

Tags: housing market, cost, mistake, Home Information Packs, house, opposition, minute, House of Lords

House prices still rising

House prices have continued to accelerate, with the latest figures showing a rise for the 18th consecutive month.

The Royal Institute of Chartered Surveyors (Rics) has published housing market survey and it makes for bad reading for first-time buyers.

Statistics shows that new buyer enquiries fell for the fifth consecutive month in April and the decline is taking place at a faster rate.

Rics says that this is down to the latest round of interest rate rises which helped to make more homes unaffordable.

“Last week’s interest rate hike may not be the last as the housing market has not slowed as quickly as expected given the initial round of rate rises,” commented Ian Perry from Rics.

“With prices buoyant and conditions still tight, another rate rise later in the summer looks likely.”

Things look set to get worst for first-time buyers as the introduction of Home Information Packs (Hips) in June may force some sellers to take their properties of the market.

Currently, the housing market is benefiting from increased supply as people try to avoid having to fork out for a Hip and prices still continue to rise.

“The fear of paying the upfront buying costs of Hips has pushed more property onto the market,” said Mr Perry. “This will continue throughout May but conditions should tighten if Hips goes ahead on June 1st as sellers withdraw from the market.”

Tags: round, summer, fear, Royal Institution of Chartered Surveyors, price, Home Information Packs, house, faster rate.Rics