Property News

Homebuyers ''will approach'' estate agents for Hips - 10/05/2006

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A survey by the Association of Mortgage Intermediaries (AMI) has shown that almost 90 per cent of its members think that sellers will approach estate agents for help with home information packs (Hips).

Most respondents also said that they were considering the effect of Hips on their own businesses, with some AMI members themselves making arrangements for Hip provision, including teaming up with estate agents and organising their own packs.

The readiness of the property market to deal with Hips could help comfort sellers - particularly first-time sellers - who could face extra pressure during the selling process to produce these packs at their own cost.

Government estimates indicate that each Hip will cost between £600 and £1,000 plus VAT per home.

The National Association of Estate Agents (NAEA) warned last month that the spiralling cost of house selling could have far reaching effects within the market.

NAEA chief executive Peter Bolton King said that "many first-time sellers may find that the next step up the ladder is simply too much of a stretch for them, and be forced to stay put".

"This will, of course, impact on the rest of the housing market, slowing it right down and causing frustration for first-time buyers and those further up the housing ladder alike."

Hips, which will become compulsory from June 2007, contain information on the property to be sold for potential buyers and will address current issues such as delays and transaction failures, according to the government.

© Adfero

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