Page 23 - Phonebox Magazine October 2006

Home Information Packs (HIPs) R.I.P.
Stephen Oakley comments on the autumn market...
It has been a tough few months for many of the larger corporate average £293,248) has risen from £4,535 in 2000 to £12,535 today.
estate agency chains, and for some major house-builders. The double whammy of an unexpected quarter point on interest rates and the government U-turns on HIPs has not gone down well with shareholders.
Some form of HIPs may yet be brought into force – at present the government are continuing to make compulsory the energy efficiency report which has become a European directive. But in the main the proposed legislation has been watered down to a level which makes it largely irrelevant.
Some of the larger estate agency chains banked on undiluted HIPS legislation – and lost. Far from proving a money spinner the proposed legislation unravelled in a spectacular fashion to leave a trail of broken dreams, frustration and financial loss.
No such complaints, however, from the independent estate agency sector who are rather more interested in clients than shareholders. No home condition reports and no large extra expense for homeowners can only be good things.
As it is, the cost of moving home is significant and has increased greatly over the past six years. According to a recent Woolwich report the cost of moving from a three bedroomed semi-detached house (national average £174,744) to a detached house (national
This is an increase of 176% compared to 70% in the growth of house prices over the same period.
The considerable price of a home information pack would have greatly increased the cost of moving home at a time when house owners are already seeing substantial diminution of their disposable income through higher household bills and added taxes.
Had HIPs, in its intended form, come into force, there is little doubt that home-owners would have tended to stay put and spend on improvements to their existing property rather than trade up. This would have stalled the market.
The early evidence is that this will now not happen, despite the latest interest rate hike which will certainly put an extra squeeze on any badly indebted households. If unemployment rises this would be a major concern but the feedback from our associates across the length and breadth of the country is that there has been no let up in activity – perhaps a slight fall during the World Cup and while July temperatures reached the 90s – and no shortage of buyers and sellers.
So our rare period of balanced market continues and looks set to continue into the autumn period. Barring the unforeseen this should be a stable environment in which to enter the housing market. d
PROPERTY TO LET
No matter how large or small your property, our experienced lettings team will be pleased to let it for you.
Please call Janet, Jenny or Julie on 01234 711800.
We offer free valuations and a full management service.
35 High Street, Olney, Bucks • 01234 711800 • www.stephenoakley.co.uk
Phonebox Magazine 23