The National Association of Estate Agents (NAEA) welcomes the publication of a report by GMAC-RFC from the Oxford Economic Forecasting on the impact of Home Information Packs (HIPs).
The report clearly indicates a belief that housing supply will be affected by the introduction of HIPs in June 2007. It then goes on to look at two scenarios based on a 10% and 25% reduction in transactions. Even at the 10% level a significant reduction in Government revenues is predicted, as well as additional unemployment and an effect on the country's GDP.
Peter Bolton King, Chief Executive at the NAEA, comments: "This report, which has been produced by a well respected organisation, confirms exactly what the NAEA and our own research has consistently said. Sellers who want to 'dip their toes into the market' will be put off by the prospect of having to fund a HIP out of their savings if they take the property off the market. Our own independent research showed that 73% would think twice before offering their homes. This could well have an effect on house price inflation and, as confirmed by Oxford Economic Forecasting, on the whole economy. The whole idea of HIPs is to help the consumer make decisions, the principle of which we totally support. However, a reduction in supply may well also restrict their ability to make the decision to move in the first place."
