Tory bid to scrap HIPs slammed

A Conservative Party call to suspend home information packs (HIPs) in a bid to reinvigorate the housing market has been slammed.

The Association of Home Information Pack Providers (AHIPP) says the Tories should stop its “politicking” about HIPs, arguing the controversial packs “have nothing to do” with the problems in the mortgage arena.

The Conservatives have been against the introduction of HIPs since their launch just over a year ago, when they pledged to scrap them should they come to power.

The party claims HIPs are proving a burden to the housing industry and are putting speculative sellers off placing their property on the market.

But Mike Ockenden, AHIPP director general, says: “It is worrying that the Tories do not seem to understand what is going on in the market place.

“There is no shortage of properties available for sale and indeed sellers are changing agents at record levels to try and secure that elusive buyer.

“Our members are reporting that where an offer is secured, HIPs are helping to move to exchange of contracts at record levels thus increasing certainty for buyers and sellers and reducing stress.”

The Tory attack follows similar recent criticism from both the National Association of Estate Agents (NAEA) and the Royal Institution of Chartered Surveyors (Rics).

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

Gillian Charlesworth, director of external affairs at Rics, added: “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“Consumers are paying for searches twice, because in the current slow market, legal searches are often out of date by the time a sale is agreed.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.”

However, research carried out by MyHomeMove, a parent company of HIP provider MyHomeInformationPack, suggests that HIPs have helped reduce the amount of time it takes for a property transaction to take place by 13 days.

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Scott Sinclair
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scott.sinclair@incisivemedia.com