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Hips could take spring out of the market

The Council of Mortgage Lenders is calling for the Government to rule out a spring 2007 launch for home information packs or risk creating a pre-Hip rush that will blight the traditional boom season.

CML deputy director gen- eral Peter Williams told a conference in London this week that bringing in the packs in early to mid 2007 could see sellers trying to avoid the new requirements, creating a summer lull that could damage property prices.

Williams said consumers will try to evade the forecast costs of 635 per household.

He suggests that the Office of the Deputy Prime Minister should consider the efficiency with which Mcob was implemented in November 2004. The date was at the low end of the mortgage cycle so any effect was minimised.

Williams said: “Hips are part of an incredibly complicated process with a range of effects and market impact. There is a real risk that Hips could coincide with the peak in the market and boost people into selling before the launch date in 2007 so why launch at this time? It could all end in tears.”

An ODPM spokeswoman says: “The date is something that is in discussion at the moment. The minister has expressed an early date but we are certainly doing some research on the market imp- act with the likes of the CML and HBoS.”

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