RICs report record number of houses for sale Article Published: 20:49 14/06/2007 Article Classification: United Kingdom
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The number of properties put up for sale in May reached a new record high according to the Royal Institution of Chartered Surveyors (RICS).

Overall, 39% more chartered surveyors reported a rise in new instructions, up from 12% in April.

People were trying to get their properties on the market before the introduction of Home Information Packs (HIPs), surveyors said.

But recently the introduction of HIPs was postponed from 1 June to 1 August.

Delayed

In addition, the government announced that only properties with four bedrooms or more would need a HIP after 1 August.

Ultimately, though, the plan is that all homes put up for sale should have a HIP.

HIPs have been controversial, with many housing industry groups calling for the idea to be shelved on the grounds that they are expensive and unnecessary.

Several housing market surveys have noted in the past few months that homeowners were keen to put their property on the market before 1 June.

This is probably because properties that have been placed on the market before 1 June would not need to have a pack in place until January 2008.

All properties put on sale after 1 June had to have a HIP.

But the government's decision to delay - on the grounds that there were too few inspectors ready to produce HIPs - has changed this for the time being.

Short lived

The increase of supply in property for sale in May caused a "loosening" in the market, RICs said.

"Conditions in the market have loosened as sellers sought to avoid the upfront costs of the recently delayed HIP," Jeremy Leaf, RICS spokesman said.

"However, the surge in supply will be short lived, although owners of four-bedroom properties may decide to enter the market before the next deadline on 1 August," Mr Leaf added.

RICS added that a combination of higher interest rate and borrowers worried by the ending of fixed rate mortgage deals was leading to a cooling in the UK housing market.

Nevertheless, nearly 24% more surveyors reported house prices in their area rising rather than falling.