House prices fall as Hips have impact

The number of properties with four or more bedrooms being put on the market fell by 41 per cent in September as the arrival of mandatory Home information packs (Hips) dissuaded sellers, Rightmove has reported.

The trend contributed to an overall fall in house prices of 2.6 per cent, the most significant decrease seen in over five and a half years.

While Rightmove termed this fall "a statistical anomaly," the firm added that the number of one and two bedroom homes listed also fell by 24 per cent, with 15 per cent fewer three bedroom properties also being put on the market.

Possible changes to the right to market a property as soon as it has been commissioned could also slow sales if an end-of-year review alters current rules, the firm added.

"If [the drop in properties coming to market] happens with the remainder of the phased introduction of Hips, the concern will be that impulse sellers are being put off by the additional costs and hassle of a pack," confirmed Rightmove commercial director Miles Shipside.

"Whilst it should all settle down with time, it will take longer as sellers are now facing the challenges of a cooling market and the highest interest rates for six years," Mr Shipside added.

However, in light of the current global financial crisis, many experts now believe that interest rates have at the very least peaked, and could indeed fall within the coming months.


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