A 'cost of moving 2007' survey by mortgage provider Woolwich has revealed 85 per cent of estate agents believe Hips will increase the cost of moving for sellers - which will be especially problematic for those forced to move after running into financial difficulties.
Meanwhile, 77 per cent of the same group predict Hips will be counter-productive in the house-buying process.
However, the good news is that home-sellers have been able to negotiate lower fees with estate agents and solicitors, which has reduced the cost of moving.
"The market definitely favours sellers at the moment and the lack of property on the market is helping them negotiate deals with estate agents, and to a lesser degree solicitors, as agents are desperately trying to find enough good quality property to satisfy the increasing demand," commented Andy Gray, head of mortgages at Woolwich.
"As a result the cost of moving for sellers has decreased by approximately ten per cent since last year ¬¬- it now costs on average £4,666 to sell a home compared to £5,181 last year."
Worryingly, though, the roll out of Hips looks set to wipe these savings out - leaving home-sellers with a substantial bill.
Hips are not essential in all cases. The UK's leading quick sale property company National Homebuyers does not require a Hips pack in order to purchase your property. Director Julian King, says: "The cost of selling property is spiralling out of control as the introduction of Hips continues to cause distress to the British homeowner.
"We are receiving thousands of enquiries from those in financial difficulty who, now faced with this additional expense, are finding alternative ways of selling their home."
