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Property Prices on the climb

15/10/2007

According to latest industry news, house prices in the UK have increased the most over the last six months.   It is suspected that the main driver for this sudden shift is in the volume of people looking to sell their houses before the mandatory home information pack (HIPS) surveys kick in. 

Figures suggest that an average of a 2.7 rise has occurred in September for the average home which takes its value to just under 250,000.  The figures for the previous month have shown a contrasting 2.6% fall.

HIPS will be made mandatory for larger properties and now it will be regulated that the seller is to organise a inspection on their own home by someone who is a qualified home inspector in advance of the property going on the market.  This can become advantageous for the buyer as they will know the property is in acceptable and a fair standard before they commit to purchase.  The property must have any remedial work undertaken if the report should highlight any areas of concern.

Research from Rightmove has highlighted that there has been an increase of bigger houses with more bedrooms on the market which has influenced the rise in average prices.  Sellers are looking to simply save money and effort by avoiding the Home Information Pack survey.  Even with these figures in mind the market seems to slowing down, houses are taking longer to sell on the market.  The temporary misrepresentation of the property market will eventually disappear once the HIPs are enforced.

Rightmoves Commercial Director – Mike Shipside said: “Surges of properties coming onto the market will increase both competition amongst sellers and increase buyers’ bargaining power. Sellers who need a quick sale will have to respond by pricing competitively.”


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