The latest quarterly survey of the housing market by xit2 has revealed that eight out of ten industry experts believe the cost of HIPs will put a stop to prospective sellers testing the market.
83 per cent believe sellers will bare the brunt of the upfront costs, which could be as high as £800. This figure represents a massive shift from the previous belief that it would be estate agents who would absorb the costs.
Previous figures in May 2004 suggested that only 20 per cent surveyed expected that HIPs would stop sellers testing the market but the figures for Aug 2004, with a 63 per cent shift, emphasises the change in mood as to who will bare the costs.
Paul Duckworth, managing director at xit2, said: “I know of people who would like to purchase their next, larger house but have no idea if they can realise enough equity. Putting the house on the market is possibly the only accurate way of establishing this.”
Eddie Goldsmith, partner in law firm Goldsmith Williams, said: “If this is implemented when the market is fragile there is a chance that this could send the market over the edge.”
Cameron Amaira, head of sales at Mortgage Express, said, “I believe that if the cost of HIPs are met by the sellers then we should see a significant reduction in the number of sellers testing the market.”
