How can HIPs could push property prices up?

June 2007 will see the introduction of the Home Information Packs (HIPs) which could, according to experts across the board, lead to a shortage of homes on the market and further push up prices.

These packs are to help the first-time buyer by placing the costs of searches and surveys onto the seller.

Around 30 per cent of homes on sale at the moment were put on the market spontaneously according to one expert. As these packs will force the sellor to prepare their properties before marketing them, there will be less of a spontaneity crowd or impulse buyers and sellers. With this in mind, the knock on effect is less property on the actual market, therefore pushing prices up.

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