Hip controversy rages on

Government claims the introduction of its home information pack (HIP) scheme has been a success have be severely criticised by the opposition.

The Department for Communities and Local Government (CLG) today published the pilot studies report into the impact of the scheme on the UK property market.

Carried out by Ipsos/Mori, the report finds 72 per cent of sellers were satisfied with Hips, 79 per cent agreed it contained everything expected, and 81 per cent understood all the documents it contained.

The government has taken the findings as evidence the scheme is now operating successfully.

"Consumers are already benefiting from the introduction of Hips," claimed housing minister, Caroline Flint.

"Search costs are falling as a result of increased transparency in the market, energy ratings can help people to reduce fuel bills, and first-time buyers are receiving important information about their home for free."

The government was supported by the Hip Payment Service (HIPPS) – which offers hips to homeowners.

"The research released today provides a clear indication the introduction of Hips has been a success and they have quickly become integrated in the home buying and selling process," said HIPPS chief executive, Jeff Smith.

"The positive objectives behind the packs are already coming to fruition and I hope we can now move beyond the propaganda surrounding their introduction to ensure the home buying and selling public can continue to experience the true benefits."

However, these claims have been sharply rejected by the Liberal Democrats, who point to government failing in the same report.

The opposition party points to findings which suggest almost 60 per cent of buyers did not see a Hip early in the house buying process.

Perhaps more importantly, a majority of buyers did not feel a Hip had speeded up the home buying process – some 58 per cent.

Furthermore, over three-quarters of buyers said Hips had no effect on their decision to purchase their property.

"Even the government’s own research shows that Hips are not working as they should. Why weren’t these facts made public before the national roll-out?" asked Lembit Opik.

"Hips are now compulsory for all properties coming on the market but ministers have only now given in to our pressure and released the results of these pilot studies."

Hips were rolled out over 2007, becoming compulsory for all sales on December 14th.

"I will be asking the government whether they have any plans to suspend Hips until they can be proved to work." continued Mr Opik.

The National Association of Estate Agents (NAEA) has supported the Liberal Democrat position, questioning both the validity of the research and the government's response.

"The industry continues to be willing to work with government," said NAEA president, Stewart Lilley.

"However, it is extremely negative of the government to bring out research now based on trials in an attempt to blame agents for all the problems of the Hips roll-out, when the government has bull-dozed Hips through despite repeated concerns and warnings from the industry."