Hoorays for HIP Demise; but No Pickup in New Instructions for Estate Agents
The immediate suspension of HIPS by the new Coalition Government on 21st May has been met by and large with approval by Conveyancing Solicitors, Estate Agents and Surveyors alike.
It was much trumpeted by Estate Agents that, once HIPS were out of the way there would be an increase in new instructions.
This has failed to materialise.
A survey by The Negotiator magazine reveals that the expected flurry in new instructions is still awaited.
This corresponds with local soundings with estate agents in Chipping Sodbury that the suspension of HIPs has not brought about more instructions for sale
Hips were seen by most Estate Agents as a barrier to people putting their properties on the market for sale
One of the seldomly reported benefits of the HIP was the reduction in abortive sales by Sellers, who were perfunctory at best in their desire to move, leading to frustrations to Buyers, Estate Agents and Conveyancing Solicitors.
I posted on this in “HIPs Waste Wasters”
A small payment in the overall scheme of things was at least a commitment to move which was previously unavailable to Estate Agents and buyers.
Adam Offer CEO of Besley Hill Franchising, one of Bristol and South Gloucestershire’s biggest Estate Agents confirmed that their abortive rate had reduced significantly with the introduction of HIPs; down from 35 % to 18%.
It seems that Estate Agents have used HIPS as a scapegoat for ills in the Housing Market, and convinced themselves that without them everything would be hunky dory again.
The simple fact was that the housing market was showing signs of improvement in spite of HIPs perceived strangle hold.
It is reasonably easy to see that uncertainty over employment prospects, the dearth of mortgage approvals and punitive stamp duty levels have had a far wider impact on the Housing Market than HIPs could ever have achieved on their own.