The latest quarterly survey from xit2 revealed a shift in expectation as to who would meet the up-front cost of producing HIPs.
The survey included senior figures in the housing market from lenders, intermediaries, estate agents, surveyors and solicitors. The majority (51 per cent) of the respondents believe that it is the sellers that will have to foot the additional costs when putting their house on the market.
This is a rise of 20 per cent on the survey conducted earlier in the year in which only 31 per cent felt that sellers would be responsible for these costs.
Paul Duckworth, managing director of xit2, said: “This survey has thrown up some very revealing results. Earlier in the year 49 per cent thought that estate agents would absorb these costs but this figure has dropped by a staggering 25 per cent to just 24 per cent.”
He added: “Lenders are also receiving more votes (17 per cent) as there is growing anticipation that HIP fees will be built into products to mitigate up-front costs and used as a marketing tool.”
Eddie Goldsmith, partner in law firm Goldsmith Williams, said: “This could artificially dampen the housing market running people who put their houses up on the market for pure speculation out of the market. I can, however, foresee some kind of cost-related alliance happening between the client and the estate agent.”
Linda Will, managing director of Accord Mortgages, agreed: “Estate agents are the first point of contact in a transaction so it would seem logical for the seller and the estate agents to form some kind of deal regarding the cost of HIPs.”
