HIP, HIP away

As the debate concerning the forthcoming introduction of Home Information Packs (HIPs) rages on, research by Saga Home Insurance, has revealed that the scheme could face a backlash from worried homeowners, with almost one in two (47%) saying they are against HIPs.

With HIPs becoming compulsory for anyone selling a house with more than 3 bedrooms from this August, Saga’s research has revealed that the scheme could be liable to abuse. Almost three in four homeowners (74%) say they would be tempted to market their four-bedroomed house as comprising ‘three bedrooms and a study’ in order to avoid the cost of compiling a HIP, even though they could be devaluing their house by £121,000 (based on the difference between the national average house price for a three and four bedroom house) despite the cost of a HIP costing around £400 - £700.

This shows the true sense of feeling the public have about HIPs, as the research shows that only 3% claim to have ever lied in order to sell their home in the past, whereas a large proportion would consider bending the truth in order to escape a HIP.

When asked why they were against HIPs, half of all respondents (50%) said they were unnecessary as the current process is adequate for anyone wishing to sell a home. Also three in four (74%) felt that the absence of a home survey in the HIP meant the overall costs of selling a home would go up, as this would have to be done separately. In addition, half also said that they would be inclined not to trust the contents of a HIP, having been provided by the seller.

Commenting on the research, Andrew Goodsell, Chief Executive of Saga Group Ltd, said: “We have been all too aware of the trials and tribulations concerning the introduction of HIPs. We are absolutely supportive of any measures aimed at simplifying and speeding up the home-buying process but it’s clear that the general public still need convincing.”