The National Association of Estate Agents (NAEA) has warned that the introduction of Home Information Packs (HIPs) could lead to a reduction in the number of properties available for sale and, in turn, a rise in gazumping.
The ‘no sale, no fee’ currently employed in the UK property market is set to change as estate agents will have responsibility for co-ordinating the HIP, and home-owners will be faced with fees even if the property does not sell.
Withdrawal costs and the fact property cannot be marketed until the HIP is put together, with 14-day delays possible, may deter home-owners from selling property.
Peter Bolton King, NAEA Chief Executive, said: “Buyers who are concerned about a lack of properties available from 1st June next year may find themselves in a gazumping situation.
“There is also an argument that says the HIP could actually make gazumping easier.
“The objective of the HIP is to speed up the buying and selling process by making all the required information available at the start of the process.
“The ability for increased numbers of people to have instant access to the HIP could increase the chance of gazumping.”
References: EGi News 26/01/06
