House prices rise in Britain after Hips axed
House prices continued to edge up in May as the number of homes on the market soared following the Government's decision to abolish home information packs, research shows.
Around 22% more surveyors reported a rise in the cost of property than those who saw a fall during the month, up from 17% in April, according to the Royal Institution of Chartered Surveyors.
But more significantly, the number of surveyors who saw an increase in the number of homes being put up for sale nearly doubled during May.
A balance of 21% more surveyors said they had seen a rise in instructions during the month, up from 11% in April.
Surveyors expect the trend to continue in the near term, with nearly three quarters saying the decision to scrap controversial home information packs (Hips) will lead to a higher level of properties on the market.
Overall, the abolition of the packs is expected to boost the number of homes for sale by around 15%.
Hips were introduced in England and Wales in a bid to speed up the home buying and selling process by giving potential buyers more of the information they needed up front.
But estate agents had long campaigned for them to be scrapped, claiming the up front cost of the packs was deterring people from putting their home on the market.
The number of new buyers registering with chartered surveyor estate agents also continued to rise during May, although it increased at a similar pace as during April, with a balance of 10% of surveyors reporting a jump.
Activity levels in the market are expected to continue increasing during the coming months, with 31% more surveyors expecting a rise in sales than those who anticipate a fall.