There are 221,954 properties identified as ‘four or more bedrooms’ in England and Wales, representing circa 25 per cent of the properties advertised for sale.
Miles Shipside, Commercial Director of Rightmove comments: "This is a larger proportion than had been speculated. It remains to be seen whether this percentage will be representative of what comes onto the market after August 1st, especially if there is a rush of instructions prior to that date to avoid the costs of a HIP".
Rightmove measured an upturn in the number of new listings to the market in the weeks before this weeks latest HIP u-turn by the Government.
Miles Shipside adds: "We compared equivalent periods against 2006, and this year was around 10 to 15 per cent down on last year. The middle of April 2007 saw a dramatic turnaround, with over 88,000 properties coming to the market over two weeks, compared to 60,000 the year before. It is impossible to say this is all down to the HIPs factor, and numbers were less dramatic in the subsequent 2 week period. However, momentum did seem to be building with some estate agents reporting a 20 to 30 per cent increase in new listings just before it was pulled".
The phasing in August will have a less dramatic effect on the numbers of new listings, but could lead to a surplus of larger properties if sellers of four bed-roomed properties act in a similar fashion.
However, Miles comments: "I think there is a loophole that some will look to exploit. You have to have 'commissioned a pack' to market a ‘four bedroom+ property’ after August 1st, not physically have documents in your possession. This will be virtually impossible to police, so I can see lots of documents not being ordered till a purchaser has been found, rather than ordering and paying for them up front. Ironically elements of this may prove to be a more effective solution than is coming out of the HIPs trial areas that have been running for some months".
