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‘Sellers set to swamp market ahead of Hips’

Property sellers eager to avoid the cost of home information packs will swamp the market in the run-up to their introduction in June 2007, warns the Council of Mortgage LendersIt says that over the next 18 months, homeowners will sell earlier to avoid having to produce Hips – expected to cost around 600 plus VAT for the average home – prompting a glut of properties hitting the market and potentially depressing it at one of its busiest times.

The CML says it is in favour of compulsory Hips and is working closely with the Government to implement the scheme but it is concerned that industry recommend-ations for an introduction of Hips between October 2007 and January 2008 have been ignored.

Deputy director general Peter Williams says: “Despite being disappointed with a summer implementation date, the CML will be working with the Government and industry to mitigate any negative effects and make the transition to Hips as smooth as possible.”

The Royal Institute of Chartered Surveyors says the fin-alised date brings welcome certainty to the market but it is convinced that success will depend on public confidence in those responsible for delivering the reforms.

Spokesman Jeremy Leaf says: “The announcement of the date will give certainty to the market and is a clear call to action. We now have a firm date to work towards but the timeframe is a tight one.”Main lenders compared with product rating

Mainly used Product satisfaction% Mean score(based on +2 to -2 scale)

Abbey 39 1.26Halifax 32 1.19Northern Rock 23 1.17Nationwide 23 1.54Alliance & Leicester 15 1.42Cheltenham & Gloucester 13 1.42Birmingham Midshires 10 1.14GMAC RFC 7 1.29Bank of Scotland 5 1.25Mortgage Express 5 1.31

Source: Henry Samuels Marketing Services, October 2005

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