Increase in mortgage approvals helping property market, but HIPs changes make little impact
Tuesday 28 April 2009
Good news for the residential property market is reported in a recent Home Sale Network member survey that indicates the increase in mortgage approvals is helping new sales. In contrast respondents report little impact on the market of the recent HIPS changes.
Increases in both buyer enquiries and sales agreed were reported for March 2009 according to a survey conducted by Home Sale Network, the national network of independent estate agents, in early April.
86% of survey respondents indicated increased buyer enquiries in March 2009 over February and 77% reported an increase in the number of sales agreed in the same period.
Perhaps more significantly, when asked whether members had seen any evidence of the reported increase in mortgage approvals; 30% said they had and more sales had resulted. 24% indicated there was some evidence of an increase in approvals but this had not impacted sales, while 40% indicated that mortgages were still difficult for buyers to obtain. The remaining 6% of respondents had seen no evidence of an increase in mortgage approvals in their area.
In contrast when asked about the impact of adding the new Property Information Questionnaire (PIQ) to the HIP and the end of the first day market concession, 67% of respondents indicated that this action had had no impact on the market in their area. 20% said they had seen a rise in instructions in March before the first day marketing concession ended and the remaining 13% reported that the inclusion of the new PIQ is deterring would be sellers in their area.
Richard Tucker, Managing Director of Home Sale Network, said, “We saw a further increase in both buyer enquiries and sales agreed during March. We continue to be encouraged by these signs of movement in the market and believe that further increases on mortgage approvals over the coming months will have a positive impact on property sales.”
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