One estate agent recently said that HIPs were at least partly responsible for a downturn in the number of properties being put up for sale, stating that there had been a marked reduction following the widespread implementation of the packs on all residential properties in England and Wales late last year.

He said: “Clearly everyone accepts that there are a number of financial and economic factors that have caused the market to take a breather after seven hectic years. However, these figures show that there is an anomaly between instructions on properties where a Hip is required and where one is not.”

He added: “With sales slowing and normally a traditional autumn bulge in instructions, it would be normal to expect stock levels to be significantly higher. This once again appears to show the adverse effect Hips are having on the market, the lives of consumers and indeed the overall economy.”

A recent trial also seemed to indicate that the packs were not as effective has many had hoped they would be, with figures indicating that only one in six potential property purchasers was actually getting to see the pack before putting in an offer on the property.

The shadow housing minister was not impressed with this, stating: ‘These results reveal what we and the industry have known all along, Hips are a complete waste of time. It is proving to be a very costly and bureaucratic joke. The Hip hasn’t made the process quicker or more certain, it has simply made it more expensive and choked in paperwork. It is the time this Government scrapped Hips once and for all.’

However, there are also supporters of these packs. One government official recently said: “First-time buyers’ upfront costs are falling as a result of the packs, greater competition is driving down the cost of Local Authority searches for all, and EPCs are helping consumers cut fuel bills and carbon emissions.”

Following the recent trial the housing minister, Caroline Flint, said: ‘What is clear from the trials is more buyers wanted to see the Hip but it was not always made available to them. We have taken action to increase awareness of the right to see a Hip and to remind agents of their responsibility to provide one. Consumers are benefiting. Search costs are falling, first time buyers are receiving important information.’

Recent additions:

• Can Long Fixed Rate Mortgages Stabilise Mortgage Market?
• Are you a homeowner on an IVA programme?
• Trial shows HIPs not as successful as hoped
• Crippling mortgage rates for first time buyers with no deposit
• Addition liquidity for banks through injection of cash

Are HIPS a waste of time? is a post from: Glitec Loans

However, these HIPs have been at the centre of controversy since their introduction, and it now seems that the packs are not proving as effective as had been hoped. In fact, recent figures show that only one in every six buyers actually sees the Home Information Pack before making an offer on the property. The survey shows that the majority of buyers do not get to see the HIP for the property in which they are interested.

With regards to the survey results the shadow housing minister stated: ‘These results reveal what we and the industry have known all along, Hips are a complete waste of time. It is proving to be a very costly and bureaucratic joke. The Hip hasn’t made the process quicker or more certain, it has simply made it more expensive and choked in paperwork. It is the time this Government scrapped Hips once and for all.’

The housing minister, Caroline Flint, said: ‘What is clear from the trials is more buyers wanted to see the Hip but it was not always made available to them. We have taken action to increase awareness of the right to see a Hip and to remind agents of their responsibility to provide one. Consumers are benefiting. Search costs are falling, first time buyers are receiving important information.’

Recent additions:

• Advice given to potential home purchasers
• Many first time buyers facing soaring mortgage rates
• Darling addresses long term fixed rate mortgages in budget
• No change in interest rates for March

Trial shows HIPs not as successful as hoped is a post from: Glitec Loans