HIPs suspension triggers flood of properties on to market

A flood of new properties has come on to the market since HIPs were scrapped on May 20, giving estate agents their busiest week in nearly three years.

Rightmove says new listings on its website have increased by 35.4%, while the UK’s largest estate agency chain, Countrywide, says the number of new properties coming on to the market through its 1,200 branches jumped by 34%.

Rightmove’s commercial director, Miles Shipside, said: “We would expect to see a post-election pick-up in fresh stock coming to the site as people have been put off by the uncertainty of the election recently.

“However, 35% is a significant increase in new listings, and indicates that many more speculative sellers have been encouraged to bring their properties to market since HIPs were scrapped. It seems that the additional cost and red tape were putting sellers off.”

New listing numbers were up throughout the country, although levels varied across each region. Wales had the highest increase in listings, with the number of new properties going up by 66%, while the lowest was in the North-West where the rise was 12%.

Countrywide says its new instructions were a 68% increase on the same week last year, with the number of new properties reaching levels not seen since September 2007 – the same month that HIPs were extended to cover three-bedroom properties.

Robert Scarff, managing director of Countrywide’s estate agency division, said: “The results speak for themselves and show that the timing of the suspension of HIPs was crucial.

“This decision has provided home owners with the incentive they need to put their properties on the market. Those sellers who were in two minds are now doing so and causing a big spike in activity for agents.”

Figures from around the regions show the increases in sellers for Countrywide companies:

East Midlands: Frank Innes 53%
Central & West Midlands: Dixons and RA Bennett combined 126%
East: Abbots 47%
North-West: Bridgfords 50%
North-East: Bairstow Eves 58%
Greater London: Bairstow Eves and Mann Countrywide 26%
South-West: Millers and Stratton Creber 17%
South-East: Bairstow Eves, Taylors, Wilson, Alan De Maid, Geering & Colyer and Mann Countrywide 32%
 
Scarff added: “The increase in activity kicked off as soon as the Government announcement was made. Not surprisingly, there have been no reports of buyers questioning how the HIPs suspension will affect them.

“This supports our view that the Government was 100% right in their decision to suspend the scheme.”