Home Information Pack changes get a mixed reception

Monday, 6 April 2009 10:01 AM

Changes to the Home Information Pack (Hip) which have come into effect from today have received a mixed reception from the property industry.

The National Association of Estate Agents (NAEA) say they have found 89 per cent of property professionals do not believe the new requirements are beneficial to buyers.

However, the Association of Home Information Pack Providers (AHIPP), has said the changes will be beneficial to buyers, allowing them to be better informed about a property they are considering for purchase.

From today, the pack must be available before a house is put on the market, as well as including additional information such as a questionnaire.

The NAEA has said Hips are stopping people from putting their property up for sale, with 65 per cent of property professionals surveyed believing the new arrangements will discourage sellers from putting their property up for sale. They say the figures are mirrored by the government's own statistics which showed 77 per cent of house buyers paid no attention to Hips.

Peter Bolton King, chief executive of the NAEA, said: "It is extremely worrying that the government is pushing ahead with an ill-judged and unpopular scheme that, in the opinion of UK property professionals, will actually slow the market down.

"It reflects a stubbornness on the part of the government and a reluctance to admit that Hips in the main are pointless and expensive - and according to their own figures, ignored by the very people they claim benefit from them.

"Surely between them Alistair Darling and Margaret Beckett can see that Hips should be suspended - not made compulsory."

The NAEA are calling for Hips to be completely abandoned.

Moneysupermarket.com have also condemned the changes, saying they will hold up the already struggling housing market. Louise Cuming, head of mortgages at moneysupermarket.com, said: "This is one nuisance the mortgage market could do without.

"The new legislation will add more hurdles to be cleared before marketing your house. Your Hip must be bought, paid for and completed before you can even whisper a rumour that your property may be up for sale. Getting the Hip completed takes between three to five days, so properties can no longer be marketed from day one.

"At a time when we are desperately trying to revive the mortgage market, why are we adding this extra layer of complexity, especially when there is evidence that many potential buyers refuse to inspect the multi-page Hip before making an appointment to view a home, and a high percentage don't even bother to look prior to making an offer?"

"HIPs have been a disaster since their initial roll out."

The Royal Institution of Chartered Surveyors (Rics) have said Hips will be of limited use, and want to see the government "regulating practitioners, rather than trying to control the process".

However, the AHIPP have welcomed the changes.

Mike Ockenden, director general of the AHIPP, said: "Providing simple, easy to understand, upfront information regarding a property will enable buyers to make a more informed decision, making them less likely to pull out later in the process.

"The PIQ (questionnaire) will also raise consumer awareness and appetite for the Hip, as vendors completing the questionnaire are likely to request to see similarly completed forms for any properties they go on to view.

"The information required in the PIQ is already obtained from the seller in the present system, but much later in the sale process. There is nothing new, just different timing that makes total sense."

The Council of Property Search Organisations (CoPSO), have also welcomed the chnges to the Hip. Head of communications at CoSpa, Kate Nicholls, said: "These changes mean that consumers can be more confident than ever that their Hip contains the fullest and most up-to-date information that's available.

"In this crucial time for the property market, and just at the point when we might just be seeing the first 'green shoots' of recovery, it's absolutely essential that transactions are both wholly transparent and that buyers and sellers have complete confidence in them."

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