Estate agents take 'unnecessary' risks with Hips

A minority of estate agents are taking risks with their selection of provider of home information packs (Hips) argues the scheme's administrator.

According to the Association of Home Information Pack Providers (AHIPP) estate agents are taking unnecessary risks by obtaining Hips from providers which do not subscribe to the Hip code.

Finance is the principal driver for this choice, according to the AHIPP, which warns estate agents they may be taking a risk themselves in their role as the 'responsible person' under the law, often without realising it.

"While I understand many estate agents do not like Hips, they are here to stay and it is important that agents understand their legal responsibilities in respect of packs," said AHIPP director general, Mike Ockenden.

"To protect themselves and of course the customers that they are serving they should only use packs that carry the Hip code logo."

The Hip code was established to protect consumers as well as estate agents, conveyancers and mortgage lenders.

It requires that Hip providers meet high standards and carry Professional Indemnity (PI) insurance of a minimum of £2 million per Hip.

Further, it requires that there is an independent redress mechanism available to consumers' that is free to use.

Hips were made compulsory for the sale of all properties in the UK on December 14th last year, after a gradual roll out.

However, documents are still only required at the completion of a property transaction, with the government announcing the so-called first-day marking of Hips would now be delayed "until the end of the year".

The change would have forced sellers to prepare a Hip from the first day a property was placed on the market.

Chris O'Toole