Reports cause drop in homes for sale

Published on Wednesday 11 February 2009 09:07

A SHARP fall in the number of houses put up for sale has followed the implementation of home reports.

The controversial legislation – which includes a survey, energy report and property questionnaire – costs sellers an average of 500 to 800.

New ESPC sales data indicates that, since they became compulsory for new homes advertised after December 1 last year, there has been a sharp fall in homes made available.

In December, the number of houses put up for sale fell by 70 per cent, followed by an almost 75 per cent decline in January. The declines followed a glut of new properties coming on to the market in the week prior to the legislation being implemented.

ESPC chief executive Ron Smith said: "If constraints in supply were to be prolonged, this could result in prices being artificially inflated for a period of time, which would not be beneficial to the long-term stability of the market."

However, he added: "There was always going to be some short-term disruption with such a significant new piece of legislation and it is much too early to draw conclusions."