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Housing market gets boost from axed HIPS

Housing supply has increased despite a rise in prices, thanks to the abolition of the HIPS scheme.

According to the Royal Institution of Chartered Surveyors UK Housing Market Survey, published today, the net balance of surveyors reporting rises in new instructions was 21 per cent in May compared to 11 per cent the previous month.

Surveyors questioned expected a 15 per cent increase in housing supply in England and Wales, with 73 per cent saying that the decision on HIPS would lead to continued higher level of instructions.

Buyer interest continued to rise in May, although at widely the same pace as April, with 10 per cent of surveyors reporting a rise in new buyer enquiries, up from nine percent the previous month.

The boost to the housing market comes despite an increase in house prices. The number of surveyors reporting a rise in prices in May was 22 per cent high than those reporting a fall. This compares to 19 per cent in April. Prices are rising in most regions except for Yorkshire and Humberside, the West Midlands and in Wales and Northern Ireland.

RICS spokesperson Ian Perry said: “Surveyors are generally confident that sales will continue to pick up over the summer months. The increase in supply as a result of the abolition of HIPS is helping to support this optimism despite continuing concerns about mortgage finance. A higher level of instructions should meanwhile also lead to a flatter trend in house prices in the latter part of the year.”