The number of properties requiring a Home Information Pack (HIP) coming onto the market in September has continued to fall across England and Wales compared with the same month in 2006, according to a new survey of members by the Royal Institution of Chartered Surveyors (RICS).
73% of respondents indicated a decrease in three bedroom or larger properties coming onto the market, with only 8% of respondents indicating an increase. Respondents who recorded a fall found, on average, that new instructions fell by 37%.
The worst-affected areas were East Anglia (-87.0%) and the West Midlands (-82.0%), with substantially more Chartered Surveyors indicating a fall than a rise in new instructions for homes with three or more bedrooms. London remained the least affected region with only a -17% differential (between fall and rise).
However, with the Government talking of a full rollout of HIPs by the end of the year, it is feared the capital will fall in line with the rest of the country (the London market is traditionally dominated by flats and smaller accommodation).
RICS spokesperson Jeremy Leaf said: "Although they are not the only factor, HIPs are continuing to have a detrimental impact on the housing market, in spite of assurances from the Housing Minister that this would not happen. With fewer family properties available for sale in September, those buyers looking to upgrade to larger properties are finding it increasingly difficult to choose from declining supply. In the current climate of higher interest rates and tightening mortgage lending, the Government needs to take stock of the impact that HIPs is having on the housing market, and refocus on the need for genuine reform of the home buying and selling process."
