NAEA & Rics launch joint Hips attack

Tuesday, 26 August 2008 12:00 AM

In case homebuyers had forgotten about home information packs (Hips) the National Association of Estate Agents (NAEA) has launched a brand new, scathing attack today.

The packs were introduced during 2007 with the intention of speeding up the sale of property in the UK market, but have been attacked for industry stakeholders who claim they are an unnecessary bureaucratic burden.

Peter Bolton King, chief executive of the NAEA, commented: "With the economic situation worsening and the property market still suffering, we are calling on the government to take urgent action on Hips."

The calls for action have become all the more shrill as the property market has continued to sleep. The NAEA's own figures show each agent is presently completing around six sales a month, down from 12 during August 2007.

Furthermore, studies by Halifax and Nationwide show average prices have fallen by 8.8 and 8.1 per cent respectively.

"We have long seen Hips as not fit for purpose and as the wrong answer to simplifying the house buying process," continued Mr King.

"Quite simply, the government tried to force 'square pegs into round holes' and the slower property market is making this situation worse.

"For instance, the current call for local searches to be conducted as part of a Hip is madness.

"Due to the length of time properties are on the market in the current climate, a majority of searches are now out of date by the time the property is sold, which means they have to be repeated at extra cost to the consumer."

The Carsberg Review of Residential Property recently called Hips "complex" and the "wrong solution" to the problem.

"In times of economic hardship, let's stop this ridiculous repeating of information and shameful waste of consumers' money," said Mr King.

Arguing reform is urgent Gillian Charlesworth, director of external affairs at Royal Institution of Chartered Surveyors (Rics) said: "One of the many things the government needs to do to aid the flailing housing market is to fundamentally reform Hips to ensure they are fit for purpose for all properties, in all market conditions.

"Consumers are paying for searches twice, because in the current slow market, legal searches are often out of date by the time a sale is agreed.

"These legal documents must be taken out of the packs and left to buyers and their advisers to obtain at the appropriate time during the transaction."

Commenting on calls for reform Mike Ockenden, director general of Association of Home Information Pack Providers (AHIPP), said: "It is disappointing that some professionals continue to try and sabotage a reform that is already starting to improve the home buying and selling process for consumers."

The AHIPP also points out properties sold with a Hip reach exchange of contracts 12 days sooner than those without.

Chris O'Toole

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