Nearly 20% of homeowners have said they would be tempted to put their house up for sale to test the market if they found that their neighbour’s property was getting a good price – even if they hadn’t previously thought about selling – according to a survey by the National Association of Estate Agents (NAEA).
The Association warned, however, that the introduction of home information packs (HIPs) in June 2007 could seriously affect this selling group, who are unlikely to want to ‘see what happens’ if they have to pay up to £500 to do so. This will inevitably have a knock on effect on the market as a whole, at a time when housing stock is already in short supply in many areas of the county.
Despite leading industry experts repeatedly warning the Government about the many pitfalls of the proposed HIPs initiative, and now the House of Lords Select Committee expressing concern, they are insistent on bringing the legislation into force on the 1st June.
Agents have long since recognised that ‘see what happens’ sellers make up a significant portion of the market. As the most valuable asset that most people will ever own, homeowners are particularly curious when it comes to the potential worth of their property.
Knowing that a home down the street is going for a good price can be a powerful motivating factor and owners are often keen to find out if this is the case.
Peter Bolton King, Chief Executive of the NAEA, comments: “A significant percentage of sales that go through start with a seller 'testing the water'. The lack of ability to do this without paying for a HIP first is likely to put many sellers off. This will reduce the supply of houses available, cause the market to slow down and lead to additional house price inflation. Both these factors could adversely affect the economy.
“Last Tuesday a House of Lords Select Committee expressed considerable concern over the incoming Home Information Pack Regulations. This survey again reiterates the damage this initiative will have on the wider housing market, one of the many concerns which have resulted in the NAEA and many other professional bodies to call on the Government to back down, even at this late stage.”
