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News that the usually lucrative month of October has seen the public purse pushed further into debt for the first time in 14 years has sparked serious criticism of Gordon Brown's recent policy....
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Wednesday 2nd May 2007
Britain's property market is likely to be distorted by the introduction of home information packs (Hips) in the next few months, the Council of Mortgage Lenders (CML) has suggested.
Hips, due to be rolled out on June 1st, are an attempt to make the homebuying process easier by forcing sellers to provide information about each property that goes on the market.
The CML's monthly market commentary argues that sellers will rush to put their houses on the market in May before becoming more reluctant once they become mandatory.
"As the year progresses, a reduction in the number of properties on the market could act to support prices and restrain the number of transactions," the CML predicts.
It also predicts that consumer price index inflation could fall back to the target two per cent rate "within months" and says recent interest rate rises have had an impact on activity among first-time buyers.
The CML's concerns reflect the findings of a report by peers yesterday which found widespread concern among stakeholders about the Hips initiative.
follow a report by the House of Lords' merits of statutory instruments committee which yesterday suggested that Hips could only "imperfectly achieve" their aims.
"The comments on these proposals which we have received from interested parties show at best scepticism, and at worst hostility," the report noted.
"The government has not been able to convince the principal stakeholders in the housing market that their proposals as they now stand are sensible or worthwhile, or are likely to be effective for their declared purposes; and they need to do more if the market is to respond positively to this intervention."
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