Sellers return after HIPs suspension

News Category: Industry News

Agents enjoyed a sunny weekend as sellers who had waited for the suspension of HIPs finally placed their instructions – and more new sellers appeared.

Robert Scarff, managing director of Countrywide’s estate agency division said: “Feedback from our network of 34 managing directors reveal that there was a noticeable increase in activity over the weekend. Sellers are becoming more receptive and we’re already seeing more requests for market appraisals to help with the ever growing buyer demand. Our branches are also reporting that sellers who were in two minds about putting their property in the market are now doing so – it appears that the suspension of HIPs is already having the desired effect and giving the market the boost it deservedly needs.”
 In London, Craig Tonkin, associate director of Marsh & Parsons, said a large percentage of people had been put off testing their properties on the market by the cost of HIPs.


“Now that this barrier has been removed, I have certainly noticed a surge in properties coming to the market,” he said.

“What is interesting is that people who were going down the rental route and therefore only required an EPC were definitely put off selling by additional HIP costs.  

“Valuation levels have more than doubled and already this stock is filtering into the sales market. For vendors who were torn between sales and lets, it is now a no-brainer for them and they can try both markets and see which delivers the best price.”

Harrison Murray, with branches in the south, also reported a number of potential vendors had held back in the days leading up to the suspension of HIPs.

It noted a modest rise in valuation requests on Friday. Commercial director Nick Salmon said: “A number of new clients have expressed delight that they now don’t have to pay for a HIP and are unconcerned that a Pack may not be available for their ongoing purchase.”

In London, Surrey and Middlesex, Townends and Badger estate agents – part of Badger Holdings – are also feeling positive.

Group sales director Douglas Sleaper said: “From across our branch network, we have seen encouraging signs of activity since the new Government suspended HIPs.
 
“We are in very initial stages and I think it is still too early to see a real impact as it has only been a couple of days. However, by close of play on Saturday we definitely found a strong number of home owners who were previously holding off until later in the year, for whatever reason, deciding to bring that forward so they don’t get caught up in the increase of supply that they believe will come as more and more sellers take advantage of the suspension of HIPs.

“Since the news broke, we have also had inquiries from the ‘accidental landlord’. Without HIPs, they are now happy to test the market to see if they can achieve what they need to. As house prices have recovered, we have seen landlords returning to the market, but for anyone on the cusp, this could be a deciding factor, pushing them to put their property on the market.

“What is also interesting is that some current vendors have now reduced their asking prices, trying to sell their property prior to many more coming to the market. No doubt the coming weeks will see these trends continue.”


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