Selling property is becoming faster and more efficient in the third quarter of 2007, with the average time taken to sell a property falling by 7.5%, according to research from conveyancer and HIPs provider, LMS.
However, LMS says it is too early to tell what the full impact of HIPs will be for the market.
The latest LMS Market Efficiency Monitor found the average time taken to sell a property fell from 53 days in Q2 to 49 days in Q3.
In the first half of 2007, the number of days taken between notification of sale and exchange was 55 days, a 17% rise on the average for 2005 and 2006, which LMS says demonstrates growing inefficiencies in the market.
The level of aborted sales has reached its highest level since 2005, with cancellation rates now at 16% and a fifth of instructions falling through before completion. LMS says this is evidence of a need for critical reform of the housing market to prevent transaction inadequacy.
The research also claims the full effect of HIPs on transaction efficiency will not become clear until HIPs have been rolled out for all property types. The introduction of HIPs in August means it is unlikely they have had a major impact on property chains and the buying and selling process.
Dominic Toller, director of marketing and new business at LMS, comments: “Any improvement in efficiency over the last three months is unlikely to be solely thanks to HIPs, rather due to a decrease in the number of properties on the market. With volumes down, the market tends to be more efficient.”
He says the market is expected to become more efficient in the coming months as the full benefit of HIPs is felt for all property types.
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