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Hips abolition boosts region's housing market

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The government’s decision to abolish Hips has given supply a boost to the region’s housing market according to the RICS UK housing market survey. It shows that 27 per cent more chartered surveyors reported a rise rather than a fall in new instructions in May in the East of England, which compares with a negative level in April. Housing activity is expected to rise over the coming months with many surveyors more optimistic. The sales expectations net balance rose from 9 percent in April to 21 per cent in May

The survey also shows nine percent more chartered surveyors in the East of England reported a rise rather than a fall in house prices. The number of newly agreed sales has also improved. But it also points to a decrease in buyer interest across the region, with six percent more chartered surveyors reporting a fall rather than a rise.

RICS east operations director, David Potter, said: “Surveyors are more confident that sales will continue to 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.”

Last Updated ( Friday, 02 July 2010 06:16 )