Estate agents not commissioning Hips

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by Kay Murchie

Last week saw the first anniversary of Home Information Packs (Hips) and a survey by YouGov found that the majority of people still believe they are a waste of time.

It is now been discovered by the Law Society that some estate agents in England and Wales are not commissioning Hips when the property goes on the market, something which by law they are obliged to do.

According to the Law Society, in some instances, Hips are not available until weeks after the property goes up for sale.

Hips were introduced to speed up the home buying and selling process as well as providing consumers with a faster and more cost effective service.

A Hip costs sellers up to £400 and contain title deeds, searches and an energy performance certificate.

Commenting on the findings, Paul Marsh, president of the Law Society, said they have evidence across the country that solicitors are not receiving a Hip when the deal is struck.

A Hip should be available immediately the agreement to accept an offer is reached but they are not being received until one month after and in some cases, not until exchange of contracts.

According to the Law Society, approximately 130,000 properties went up for sale in May but just 89,000 Hips were commissioned.

Hips continue to be subject to heavy criticism and Peter Bolton King, of the National Association of Estate Agents, said the packs have been surrounded by a catalogue of disasters since they were introduced.

To date, they have served as a hindrance and nothing more than a purposeless piece of red tape, said Mr Bolton King.

Furthermore, Nick Salmon, a member of the board of the National Association of Estate Agents, said it is understandable in the current market that some estate agents are breaking the law.

Agents and sellers who know a home may not sell for some months, or may not find a buyer at all, are wary of committing £300 upfront until they know that a pack will be required, concluded Mr Salmon.