Delay welcomed as estate agencies unprepared for HIPs

The announcement by the Communities Secretary, Ruth Kelly, that the introduction of Home Information Packs (HIPs) is to be delayed until August will be welcomed by smaller estate agencies, many of which had been left unprepared by the confusion surrounding the packs.

Without a firm decision to date on the timing or certainty of HIPs, many smaller firms have hesitated to invest time in putting into place plans for the sellers’ packs.

A UK-wide survey of smaller estate agencies by Skipton Building Society reveals that while 51% had begun work on their own HIP offering, one in five (17%) had yet to put any plans in place. A further quarter (27%) had decided not to undertake HIPs themselves but would put the customer in touch with a provider. Surprisingly, 3% of agents were of the opinion that HIPs were unlikely to be introduced at all and a further 3% did not know what HIPs were.

With regard to how much HIPs might cost borrowers, 43% of agencies did not know, a fifth (19%) estimated the cost would be between £350 – 450 and 15% between £450 – 500, while one in 20 (6%) predicted sellers would be looking at a bill over £650.

Steve Aldous, general manager of sales & marketing at Skipton, said, “It would have been only seven working days until HIPs came into force, but only half of smaller estate agencies had any plans to provide their sellers with a way of meeting their legal obligation. This announcement by the Government that the packs will be delayed until August and even then, phased in, can only come as a blessing to those agencies concerned. However, it’s difficult to lay any blame at the door of those less prepared, when speculation of HIPs’ ultimate demise has been firmly in the air.

“Many estate agents we spoke to were reticent to put a lot of time into training their staff until they knew for sure what was happening. Some, even with the extension, could struggle to catch-up, meaning sellers could be the ones to suffer.

“Help is at hand for consumers and smaller estate agencies though, as we’re launching Skipton’s own HIP service - the first national lender to do so. In that way agencies can be happy in the knowledge they’re directing sellers to a trusted provider, either via our network of 79 branches or our website.

“Better still, at £349 + VAT our pack will be one of the best value on the market and for anyone who subsequently takes out a mortgage on their new property directly with us, it will be absolutely free.”