Agents blame HIPs for shortage of housing stock

I am sorry but I get so angry when I read Estate Agents blaming HIPs for the apparent shortage of housing stock.

It was reported this week that agents, particularly in the South East, are struggling to find enough stock to sell. Property finder for example has reported that the number of homes on the market this autumn is at its lowest since the aftermath of 9/11! Instead of looking at rising unemployment (the highest is has been for a very long time) and the lack of high LTV mortgages, agents are once again raging war on the HIP.

Ivor Dickinson, managing director of London agents Douglas & Gordon, was reported in the week saying: “We had 500 properties to sell last August and in the peak months it was probably around 800. Now we have 230. I am concerned. I expected to be flooded with properties in September and I’m not.” He blamed HIPs, including Property Information Questionnaires, for deterring sellers. He warned that the current market had been “a disaster waiting to happen”.

Let’s assume Mr Dickinson and other agents are correct, if the HIP is the sole and major cause why do agents not waive their charge for the HIP and absorb the cost within their commission. Many agents buy in the HIP for less than £180 plus VAT. Surely this is small price to pay for securing the housing stock which they badly need?

One of the problem with this simple but instant solution is that the same agents are as we know from the Which organisation are relying on the HIP to earn high commissions. Come on agents, you can’t have both ways!

So my message to agents who are still determined to blame the HIP for everything, is to do something about it and to start offering the HIP FREE of charge. Perhaps they will then begin to realise the fact of the matter is that there are far more significant and underlying economic factors which are at play here.

David 21/09/09