HIP Suspension Triggers Selling Frenzy- By: Brazg Gavin
Rightmove commercial director Miles Shipside said the many sellers are now willing to market their properties mainly because that the suspension of the HIPs have reduced cost and bureaucracy or red tape.
However, we still need to feel the beneficial effect of the move. Making the purchase of a HIP mandatory before a house could be marketed meant that everyone selling a house was committed to the sale. Now that HIPs shall no longer be compulsory anyone who just fancies seeing how much they might be able to get for their house can merely put it on the market. This is especially an interesting idea today on account of prices having risen significantly a number of locations since March of last year.
Hamptons International has additionally noted instructions up by a third in April. There was a rise in supply which occurred much ahead than the predicted increase due to the HIP suspension and the planned changes in the capital gains tax. The Con-Lib coalition has said that capital gains tax on non-business assets will increase from its current 18% to "similar or close to that applied to income", in other words 40%-50%.
This is a potential drawback to buyers since they can be easily turned down by sellers who are really not committed to sell. In contrast, buyers could turn up taking advantage of it; in that it could lead to house prices coming down again.
Ever since this March, the prices of houses in the UK have been on the rise triggered by the slight increase in demand but with little supply of houses that are for sale. In fact, it was a big supply shortfall in some places leading to sales at pre-bust prices, and transformed the UK property market prices entirely.
Although there are two sides positing opinion on the matter, nobody can refute the fact that what made prices rise in the past year was the weak supply. So now with supply increasing there's a real chance that prices will slide down.
The drop in the demand has made this fact likely; according to the latest figures furnished by British Bankers Association 34,905 home loans were accepted for home acquisitions in March, which was a strong increase on the 33,360 approved in February, nevertheless still less than the six month average of 40,000, which is less than the 50,000 bench mark that the Centre for Economics and Business Research pinpointed as needed stop prices from falling.
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Gavin Brazg is editor of The Quick House Sale Advisory - UK's largest free resource of free expert advice for UK House sellers.