2
Jun
Housing Market Benefits from scrapping of HIPs
The Telegraph newspaper has commented on how the
UK property market has seen increased numbers of properties
for sale since the scrapping of HIPs on 20th May.
The article says "The number of homes being put on the market
has soared by a third since the Government announced plans to scrap
home information packs."
A major UK chain of estate agents said it had seen a 34%
rise in the number of people selling their home after the
announcement.
It said new instructions, up 68% compared with the same period a
year ago, are now at levels last seen in September 2007 - shortly
after home information packs (Hips) were first introduced.
The Government announced on May 20 that the packs, which aimed
to speed up the homebuying process by giving people more of the
information they need up front, were being scrapped with immediate
effect.
Estate agents had campaigned against Hips, complaining that the
typical £299 to £350 cost of compiling one of the packs
was deterring people from putting their home on the market to test
the water.
There was also little evidence that the packs benefited
consumers, with 91% of estate agents saying they thought house
hunters paid little or no attention to them.
However, the jump in people looking to sell properties may not
only have been driven by the end of Hips, with anecdotal evidence
suggesting property investors are considering offloading some of
their holdings before capital gains tax is increased.
The tax is currently 18% on any gains made above £10,100,
but in its coalition agreement the Government said it planned to
tax non-business capital gains at rates similar to those applied to
income.
This has been interpreted as meaning that the capital gains tax
rate will be increased from its current level of 18% to 40% or even
50%, depending on the level of income tax people pay.
There are also fears that annual £10,100 allowance on
capital gains which are tax-free may be reduced."
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