Hips see 15 per cent fall in housing stock

Monday, 17 September 2007 12:00 AM

There has been a 15 per cent fall in the level of housing stock in the UK after the introduction of home information packs (Hips), according to new research out today.

New instructions to sell property were down 24 per cent in London in the previous three months and by an average of six per cent across the country, according to estate agents Hamptons International.

"Hips have undoubtedly had an impact on the market and consumer behaviour," explained Rob Bruce, senior research manager at Hamptons.

"We await with interest the market dynamic once the initial teething problems surrounding Hips have been resolved - ideally prior to its extension to the wider market."

Five interest rate increases, seasonal trends and continued uncertainty in the international property markets have also affected house prices.

The research shows a two per cent fall in the number of four-bedroom houses coming onto the market over the previous three months, and a four per cent fall in the number of five-bedroom homes, as a percentage of UK housing stock as a whole.

This is in marked contrast to the 3.5 per cent increase in the number of three-bedroom homes on the market during August, perhaps reflecting a desire to sell smaller properties before the introduction of Hips on September 10th.

"Currently there are not enough trained energy assessors to deal with the number of four-bedroom properties coming to market.

"The extension of Hips to three-bedroom properties will only heighten the situation and if not managed effectively could potentially bring the entire property market to a halt," commented Ian Westerling, regional director at Hamptons.

The scheme is expected to be rolled out to include all two million properties coming onto the UK market by the end of 2007.

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