HIP - Home Information Pack

those currently in the first time seller bracket (24 to 34 year olds), 76 per cent said withdrawal costs incurred via the HIP would discourage them from putting their homes on the market. A massive 80 per cent of respondents in the survey’s 16-24 age bracket also stated that such costs would, in theory, deter them from putting a home on the market. Currently any home put on the market with an estate agent can be withdrawn from sale – if it does not find a buyer, or the owners need to stay put for whatever reason – without incurring any costs. From June 2007, when HIPs are introduced, homeowners will have to pay the fee for their HIP when they remove their home from the market, regardless of whether the property has sold or not.
Chief executive of the NAEA Peter Bolton King says; “Those on the lower rungs of the housing ladder clearly need all the help they can get in order to find their feet financially. This is the age at which children come along, and families are most likely to be looking for more space.

“With the anticipated cost of the HIP set at between £600 and £1,000, plus VAT, and high levels of stamp duty to contend with, many first time sellers may find that the next step up the ladder is simply too much of a stretch for them, and be forced to stay put. This will, of course, impact on the rest of the housing market, slowing it right down and causing frustration for first time buyers and those further up the housing ladder alike.”.Discuss this article on the forums. (0 posts)