Now HIPs are gone…


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former HIP provider David Pett, now of ipacks2go in Norwich The demise of HIPs is bad news for the home seller.

The sudden, though expected, demise of the home information pack may be bad news for those in the industry supplying the packs, and indeed for the 3000 or so people who are now looking for jobs, but the real loser will those who are now looking to move home. Don’t believe the political spin of our new coalition government suggesting the abolition of the HIP will put more money in the home seller’s pocket to spend in the wider economy. This is simply not true. Yes, less money to pay up front, but there is no doubt that the cost of moving home will be higher. Property search prices will increase meaning higher legal costs. Moreover the time taken to move will be longer and far more stressful. The truth is that we have all been wholly misled. On top of this the market will begin to be flooded with speculative sellers meaning we will see more people putting property on the market and then taking it off resulting in the collapse of chains and wasted costs. The former government estimated that around 1 million pounds of home owners’ money was wasted each day as a result of sale and purchase transactions collapsing. Speculative sellers also fuel house inflation and was one of the main reasons for the ‘boom’ in housing prices which as we all know ended with a very messy and costly ‘bust’.Its only days since the HIP vanished and we are already seeing a large number of estate agents and solicitors privately mourning its demise. It’s a shame and a sad indictment of the new government that it did not keep its promise to consult with industry before implementing its decision to kill over night an industry of hard working people who were committed to bring about reform for the benefit of the consumer.

David Pett is on 01603 275100.

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