A recent independent survey carried out on behalf of the National Association of Estate Agents (NAEA) clearly indicates that the introduction of Home Information Packs (HIPs) on 1 June 2007 could lead to a reduction in the number of properties coming on to the market. This can only lead to increases in house price inflation.
Peter Bolton King, chief executive of the NAEA says: "From 1 June 2007 no property will legally be able to be marketed before a Home Information Pack is in place, subject to a maximum 14 day wait. 73% of those in our survey stated they would think twice before marketing their property, knowing they will possibly face a bill of between £600 - £1,000 plus VAT if they subsequently withdraw their house from sale.
"In many parts of the country we are currently seeing a lack of available property. Any further restriction in supply can only lead to increased house price inflation. The worst-case scenario is that the Bank of England will be forced to raise interest rates in order to control this, resulting in a knock on effect on the whole economy. This is something that none of us want to see.
"The NAEA does not believe that the Government has properly considered the serious knock-on effects that the introduction of HIPs could bring."
