Hips valid for just six months

Consumer group Which? asserts that there is little indication that Home Information Packs (Hips) are making it easier or cheaper to either buy or sell a property.

In a recent report Which? found that many potential buyers and sellers experience difficulty in getting sight of a Hip, even though they have been required by law since last year.

Undercover reporters for Which? who approached a number of estate agents posing as potential buyers, found it difficult to obtaining a copy of the pack for the property in which they expressed an interest.

The investigators also found that quotes for the cost of the packs varied greatly, from £234 to £539; some agents had a flat fee, while others based their quotes on property type or whether it was freehold or leasehold.

The Which? report also raises doubts about the length of time information contained in a HIP remains valid, as according to the Council of Mortgage Lenders, “Lenders currently require searches and valuations to be no older than six months at completion”

Which? points out that depending on the length of time it takes to complete a sale, “there is a distinct possibility that many searches and valuations will be out of date by completion.”

Bob Tolliday, spokesman for Which? says: “At the moment, it’s hard to see how Hips have made the process of selling a house easier and less expensive. If much of the information in a pack goes out of date after four to six months then that doesn’t represent very good value at all.”

Discuss this in the Finance Markets forums

Story link: Hips valid for just six months