Within hours of the Coalition confirming that its policy is to abolish Home Information Packs, agents have reported being undercut by competitors advising sellers that they will not have to go to the expense of a HIP.
Sellers are also querying whether they still need a HIP, leaving agents in a quandary as to how to reply.
One agent affected, Eric Walker of Bushells, said: “I can see this spiralling. We are committed to respecting the prevailing law.“However, should the Government delay in providing a timetable, having announced their intention, it will mislead the consumer and hand a commercial advantage to those firms intent on breaking the law. “Action needs to be decisive and clear.”
He said that one competitor in Hammersmith, who had gone for a valuation, quoted a fee without the cost of a HIP. “They told the vendor we were a bunch of jobsworths,” said Walker.In his Dulwich office, a vendor wished to instruct without a HIP. “We pointed out that irrespective of first-day marketing, they would need one to exchange.The reply was that they would cross that bridge when they came to it. We offered to pay for the HIP in the event that the property sold if they were scrapped by exchange.”
Paul Smith, chief executive of Spicerhaart, said: “We’re now in limbo land. Do we sell HIPs until the law is changed, or don’t we? “We need a clear timetable for action and a period of transition to change all our software systems and paperwork. As usual, we’re the ones footing the bill for this ill-thought out mess.”
The NAEA added its voice to the calls for quick and decisive action.Welcoming the commitment to scrap HIPs, NAEA chief executive Peter Bolton King said: “It is vital that the new Government acts boldly, decisively and quickly. Sellers are not going to spend hundreds of pounds now if they feel they won’t have to in a few months.The implications to the market of thousands of people suddenly deciding to hold off selling their home could be severe. We urge the Government to act now.”
Nicholas Leeming, at Zoopla, also added concerns: “The Government must act quickly to scrap HIPs, as a delay may cause home-owners considering selling to wait before putting their homes on the market. A reduction in the supply of homes for sale at this crucial stage in the housing market recovery would harm the revival.”
