Will HIPs last the journey?

The Government says that HIPs can improve the housing buying process and help reduce carbon emissions.

Yesterday, the Conservative Party promised to scrap them if they win a general election. But what do homeowners think of them? L& C, the UK’s largest mortgage broker, asked a panel of its customers for their thoughts.

The results of the panel reveal that homeowners are less than impressed by the new Home Information Packs, which are now required for all properties being sold with three bedrooms or more.

Although 95% of those questioned were aware of the packs, 62% thought that the information provided in them would have no impact on how quickly a property would sell.

Unsurprisingly, 78% of people thought that the typical cost of £300 to £350 for a HIP does not represent good value for money when marketing a property.

In the run up to the launch of HIPs in August, the Government focused on the importance of the Energy Performance Certificate (EPC), which rates the energy efficiency of a property on a scale of A-G. Yet L& C’s survey found that 55% of people felt that a property’s energy rating would not be a factor when looking for a new home.

On the positive side, many homeowners said they would take notice of the EPC once a property has been purchased. 68% said that they would be either quite or very likely to make suggested alterations to a property to improve its energy efficiency.

Commenting on the results, James Cotton, Mortgage Specialist at L& C said, “The results of this panel suggest that while homeowners are certainly aware of HIPs, the majority feel that they offer no tangible benefit when selling a house.”

“However, it is still early days for the packs and the rules now cover around 60% of the housing stock. As more and more people in a chain become familiar with both providing and using HIPs, customer attitudes towards them should hopefully improve. We may also see some reduction in cost as they become more widespread.”