Hips confusion reigns with one month to go

Tuesday, 01, May 2007 09:26

More members of the public believe a Hip stands for the Homeland Immigration Policy than a home information pack, research out today reveals.

The study from PropertyFinder.com, which comes with exactly one month to go until the packs become compulsory, shows only 27 per cent of the general public knew what a Hip stood for.

However, among those looking to buy or sell property, recognition of Hips was far higher - 80 per cent of buyers and 94 per cent of sellers knowing what a Hip was.

But despite most buyers and sellers knowing what Hip stands for, there remains confusion over what the packs will contain.

One of the main legal documents contained in the Hip - the sale statement - was only correctly identified as being in the pack by 27 per cent of sellers and 28 per cent of buyers.

Most buyers and sellers also believed they would receive a home condition report with their Hip, (62 and 56 per cent respectively), despite the report not being included in the pack.

"The level of ignorance in the general public is astonishing given the publicity Hips have had over the last year, but at least most buyers and sellers have heard of them, even though they have little clue of what will actually be in the pack," commented Warren Bright, chief executive of propertyfinder.com.

Buyers and sellers also had different ideas for how much a Hip would cost, though this is set to vary dependent on local costs and where the Hip is purchased from. Sellers expected a Hip to come in at £496 on average, compared with £549 for buyers.

"The pricing of Hips is still a mystery to many in the industry, not just to those selling their home," explained Mr Bright.

"Given that most people, especially buyers, expect either a full structural survey or at least a home condition report, they will be in for a shock when they see they'll still need to pay to see if their chosen property is in a fit state to buy."