More delays for HIPs
Investment analysts Scotia Capital have just reported the following news…
“Speaking at an industry conference on HIPs, the Parliamentary Under Secretary of State for Housing & Planning announced that the UK government plans to delay a full roll-out with no official launch date.
“What it means… We believe the government's caution in rolling out HIPs reflects slowing demand in the housing market driven by interest rate hikes, impact of initial HIPs roll-out and issues in the mortgage market. Currently ~60% of the UK housing market is required to purchase a HIP prior to starting the home sale process. While sufficient inspectors are available for a full roll-out the government is looking for the housing market to stabilize before proceeding. Our view is that the government is committed to HIPs based on recent debates in the House of Commons but given a weakening housing market the Labour government will be cautious prior to launching the remainder of the programme.”
Scotia believe the full roll-out for HIPs has now slipped from Q1/08 to Q2/08.