New research suggests the Government’s decision to abolish HIPs has given housing supply a boost in the West Midlands.
The RICS UK Housing Market survey, published today, shows that 22 per cent more chartered surveyors across the UK reported a rise rather than a fall in house prices, up from 17 per cent in April.
Surveyors are still reporting house price rises in most parts of the country. The exceptions according to the latest survey are Northern Ireland, Wales, Yorkshire and Humberside and here in the West Midlands where three per cent more chartered surveyors reported a fall rather than a rise in prices.
Recent Government announcements are already showing signs of impacting on the market. Surveyors report that the decision to abolish HIPs – home information packs – has pushed more supply onto the market.
The net balance of West Midlands surveyors reporting increases in new instructions moved from 16 per cent in April to 26 per cent in May, and 21 per cent nationally.
This trend is likely to continue in the near term, according to RICS.
RICS West Midlands spokesperson Richard Franklin, of Edward Gallimore, said: “Surveyors in the region are generally more confident than before that sales will pick up over the summer months.
“The increase in supply as a result of the abolition of HIPs is helping to support this optimism despite continuing concerns about mortgage finance. A higher level of instructions should meanwhile also lead to a flatter trend in house prices in the latter part of the year.”
In response to an additional question included in the survey, 73 per cent of surveyors nationally said that they expect the decision on HIPs to lead to higher levels of new instructions with the actual increase in supply anticipated to be around 15 per cent.
Buyer interest continued to increase, albeit at almost the same pace as in April across much of the UK including the West Midlands where 25 per cent more chartered surveyors reported a rise rather than a fall in new buyer enquires, up from 21 per cent the month before.