Abolition of HIPS caused more sale aborts

Abolition of HIPS caused more sale aborts

According to a report on www.telegraph.co.uk almost one third of property purchases are falling through.  The telegraph reported that according to figures from 1st Property Lawyers, a large conveyancing firm in Leicestershire, 29 per cent of property transactions fell through during the first half of this year, up 8 per cent on figures from three years ago.
The top reason given for the increase in abortive transactions is due to a change of heart by the seller.  1stProperty Lawyers’ Commercial Director, has said that “the elimination of Home Information Packs in the second half of 2010 was a major factor for the increase in sales falling through” and whilst this could be true you have to consider that there are other factors as to why a sale could fall through.  The seller’s circumstances may have changed, meaning that they are not, as indicated by the report, “less serious sellers” but are in fact hindered by other issues.  One such issue could be a worry over job security, meaning they wouldn’t be comfortable with a new mortgage in the current climate, or it could be that they are unable to secure mortgage finance for their onward purchase.
It seems a little unfair to say that sellers are simply “out for what they can get” when in reality there are many who will suffer with negative equity at today’s house prices and will need to consider paying estate agent fees and also associated moving costs as well as repaying their mortgage.
You can read the full story from www.telegraph.co.uk here.
What do you think — are sellers looking to achieve over inflated prices?
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