Abolition of HIPs could boost supply of homes by 15% according to RICSs

The abolition of HIPs by the new government is set to increase the supply of homes for sale by around 15%, according to the latest data from the RICS.

The RICS said that the balance of surveyors reporting more homes being put on the market in May was 21%, up from 11% in April. In addition 73% of surveyors said they expected the abolition of HIPs to increase the number of homes for sale, with the expected increase thought to be in the region of 15%.

The RICS’ monthly survey also found small rises in both house prices and confidence, despite fear of cuts, with 22% more surveyors reporting rising prices than falling prices. However, an increase in the supply of homes onto the market is likely to add to downward pressure on prices in the future.

RICS spokesperson, Ian Perry said: “The increase in supply as a result of the abolition of HIPs is helping to support optimism [of increasing numbers of sales] despite continuing concerns about mortgage finance. A higher level of instructions should lead to a flatter trend in house prices in the latter part of the year.”