The Conservative Party has called for the abolition of the controversial home information packs (HIPs) at a debate on the Housing and Regeneration Bill in the Commons.
The packs are designed to provide key information to home buyers and speed up the buying and selling process, but have left the industry divided as to whether they offer any real benefit.
The Tories have been strong critics of HIPs since their inception and have promised to scrap the packs should they be elected. Shadow housing minister Grant Shapps earlier this month described HIPs as a “bureaucratic farce” and “complete waste of time”
Opposition still strong
The Tories are merely the latest in a long line of critics. Citing data gathered during the HIPs area trials, the National Association of Estate Agents (NAEA) pointed out that only 29% of sellers who sold a property with a pack felt that it made the process more efficient.
It added that only 20% of buyers felt HIPs sped up the buying process, yet 41% thought they made the buying process more difficult.
“This research confirms what the NAEA and its members have consistently said: HIPs are not the way to improve the buying and selling process,” NAEA chief executive Peter Bolton King said in a March 11 press release.
Massive disparity among price
More recently, consumer magazine Which? raised concerns over the dramatic disparity in costs, claiming a pack could cost more than twice as much depending on where you bought it.
“When we called estate agents in England and Wales to ask how much a HIP would cost, the quotes ranged from £234 to £529,” it said. “Some agents had a flat fee while others quoted on the type of property or whether it was leasehold or freehold.”
The research also warned that potential buyers may struggle to get their hands on a pack. Out of the 23 estate agents contacted, 11 had properties with HIP reports, but researchers were given just two.
“At the moment, it's hard to see how HIPs have made the process of selling a house easier and less expensive,” said Which? spokesman Bob Tolliday.
Survey “too small”
Trade body the Association of Home Information Pack Providers (AHIPP) questioned the Which? research, claiming it focused on too small a sample of the market to be definitive.
AHIPP director general Mike Ockenden added: “It is still very early days for the roll out of HIPs and it is quite clear that estate agents are not yet showing packs to the sellers who pay for them or buyers who are looking at properties.”
“There is clear evidence from our members that the legal process is starting to be impacted by having searches available to work on as soon as a buyer’s offer is accepted and this is speeding up the process and reducing costs to buyers.”
