(1888PressRelease)
February 21, 2007 - Some 63 per cent of homes across the country maintained their original value in the monthly period, according the Royal Institution of Chartered Surveyors (Rics) despite an exceptionally strong latter half of 2006.
In addition the research showed that only a fifth of chartered surveyors reported a rise in prices, down from 36 per cent in December.
At the end of last month, figures from the Nationwide concurred with this research, suggesting that house price inflation were beginning to slow as 2007 got underway.
House prices increased by just 0.3 per cent in January, the smallest monthly rise since May 2005, which then served to pull the annual rate of house price growth back into single digits.
In December the annual rate of property price increases was 10.5 per cent, but last month this dipped to 9.3 per cent, meaning that the average house in the UK now stands at £173,225.
However, Rics spokesman Richard Franklin said that there may be an unexpected surprise around the corner for budding property investors around the country, due to the impending introduction of home information packs (Hips) in the summer.
He said: "We may see the current supply and demand imbalance change as we head towards spring ahead of the introduction of Hips.
"Despite being a more watered-down version of the government's original plans, concern over the pack's shelf life and the bureaucracy of the scheme, could see an increase in available stocks as homeowners look to get their properties on the market before Hips come into play on June 1st."
A Hip is a collection of documents that should tell the buyer everything he or she needs to know about a property.
The documents required include: a statement summarising the terms of sale; evidence of title deeds; standard searches such as local authority enquiries, drainage and water searches; energy performance certificate; leasehold information where appropriate; commonhold information where necessary; a new homes warranty; and a home condition report.
The aim is to make the buying and selling process more transparent and quicker for both parties but over the course of their rollout they have been dogged by controversy due to costs and difficulties with acquiring documents.
Therefore, Mr Franklin believes that some homeowners will be put off the idea of obtaining Hips and will put their property up for sale earlier than planned, leading to an artificial boost in supply.
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