Hips 'exaggerating price falls'

Asking prices fell sharply in December as the arrival of Home information packs (Hips) had a detrimental effect on the market, Rightmove has said.

The average asking price fell by 3.2 per cent on the month, the property portal has reported, with a number of smaller properties flooding the market as sellers looked to avoid paying for a Hip after the December 14th deadline.

All one and two bedroom properties in England and Wales now require a Hip, at an average cost of around £300, before they can be sold.

"Whilst three months ago we forecast that the final phase of Hips would drop average prices this month, a substantial element of the fall reflects genuinely tough market conditions, and many sellers who have listed this month have priced below the market to try and sell," said Rightmove commercial director Miles Shipside.

"It is wrong, however, to speculate that prices will continue to fall based on one month's statistics from a quiet December," Mr Shipside continued.

The National Association of Estate Agents (NAEA) had previously warned that Hips would result in a slowing of the property market.



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