New rush to sell houses

The new phenomenon of panic selling, coupled with an expected rise in interest rates, is threatening to create a price crash.

A glut of new properties has come to the market this month, pushing the number of new listings up 5.7 per cent nationwide – compared to just a 4.4 per cent in buyers in the same period.

Thousands of properties have been placed on the market by sellers keen to avoid the Home Information Packs system, which will cost around £500 when they come into force on June 1.

After that date, sellers will have to pay for the controversial government packs, which involve inspections and ratings on energy efficiency. The rush to sell comes as concern rises about sluggish price rises in the region, which at just over two per cent are below inflation and far lower than boom areas like the South East.

Estate agents in the West Midlands today said they are rushed off their feet with sellers – but warned that the rush now could turn into a slump once the packs become compulsory, especially if interest rates also rise as expected.

Dave Skitt, sales manager at Wolverhampton's Sanders Wright & Freeman, said: "Normally we will value a house and people will wait a few months before making their minds up. At the moment they're making an instant decision to sell."

Keith Hollinshead of West Bromwich's Pul Dubberley described HIPs as an "extra burden" on buyers and sellers, adding: "It is very much on people's minds."

Richard Donnell, of Hometrack, said HIPs will have a short-term impact on supply, although the "greatest threat" to price growth is a rise in interest rates.