HIP’s are the primary cause of property prices in the capital rising
Tuesday, September 15, 2009 by Ivor Dickinson
Apart from a chronic waste of time and money, the introduction of HIP’s has resulted in fewer people putting their houses on the market. People aren`t selling, we have fewer instructions than ever before and, would you believe in a time of global recession, house prices are rising. In some exceptional circumstances properties are achieving 2007 price levels - Hard to believe when reports by doom and gloom merchants say the worst is yet to come.
It’s been apparent for some time this government cares very little about housing - What else does seven housing ministers in eight years tell you? When families are more strapped for cash than ever before, the last thing they want to do is pay for a HIP, particularly if they then decide not to sell or can`t find anything to buy. It’s no wonder they decide not to sell at all.
In the past, 20% of our sales would be to ‘speculative sellers’: Those putting their property on the market to see what they get and if they find something they like, they’ll move. These sales no longer exist and we are operating at half the stock levels of 2008, and two thirds the applicants.
The one good thing to come out of this recession had been the reduction in London property prices, but now, thanks to the government, the window of opportunity to get onto the property ladders is closing fast and we are back to square one.