Following the shortage of first-time buyers, we could soon have a shortage of first-time sellers.

Research carried out by the National Association of Estate Agents (NAEA), suggests that first-time sellers will be far more reluctant to put their property up for sale, due to the introduction of Home Information Packs (HIPs).

NAEAs research reveals that 75% of 24 to 34-year-olds and 80% of 16 to 24 year olds will be deterred from putting a home on the market.

HIPs, which will be introduced in June 2007, are expected to cost in the region of £1000 and will have to be arranged before a residential property can be marketed for sale.

Chief executive of the NAEA Peter Bolton King says; “Those on the lower rungs of the housing ladder clearly need all the help they can get in order to find their feet financially. This is the age at which children come along, and families are most likely to be looking for more space.

“With the anticipated cost of the HIP set at between £600 and £1,000, plus VAT, and high levels of stamp duty to contend with, many first time sellers may find that the next step up the ladder is simply too much of a stretch for them, and be forced to stay put. This will, of course, impact on the rest of the housing market, slowing it right down and causing frustration for first time buyers and those further up the housing ladder alike.”