HIPs slowing housing market says Rightmove
Four interest rate rises in less than a year and the fast approaching introduction of Home Information Packs (HIPs) are finally taking a toll on the housing market.
The average asking price of a house in the UK rose by 0.4% to £237,361 in the five weeks ended 12 May, compared with a rise of 3.6% in April, according to the latest figures by online agent Rightmove.
Prices even dropped by 2.6% in the West Midlands, while the North, North-West and East Midlands saw slight declines.
The property website also reports the highest number of houses ever measured coming onto the market in Rightmove's survey. Last month, over 200,000 properties advertised on rightmove.co.uk, while the previous highest was June 2006, with 178,158 properties.
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"It is strange to see this in a rising interest rate environment, which would normally discourage more sellers," said Miles Shipside, commercial director at Rightmove.
"The added incentive for both them and their estate agents is to potentially save several hundred pounds by avoiding the cost of a HIP. This seems to be swelling the choice for buyers and shrinking the pace of price rises for sellers," he added.
From June 1 it will be illegal for homeowners to sell their house without an HIP. Last week, the Royal Institution of Chartered Surveyors launched a legal challenge to scrap the HIP scheme.
