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Property Market Update: HIPs - 22nd April 2007

Put your house on the market now before June 1st 2007 and sell it for up to 5% more than expected price.

The government are bringing in Home Information Packs (HIPs) from June 1st, this will mean that anyone wishing to sell their house after this date will have to pay between £350 to £500 upfront to have this pack available to potential buyers.

Therefore the market experts believe there will be a shortage of property for sale from June 1st to mid September as sellers wait to see what will happen next.

This means there will be a massive shortage of houses for sale from June 1st for 3 to 6 months.

Housing shortage equals house price increase.

If you put your house for sale before June 1st you do not need to pay for the Home Information Pack unless your house is still for sale in March 2008.

This could equate to the average house price (presently £250,000) selling up to £12,500 more.

To anticipate this put your house on the market for 10% more than value and wait till after July 2007 to see how close the market reaches your asking price before making a price correction (i.e. dropping the price down by up to 5%).