HIP? - Why Do We Need A HIP

The Government estimates that £350 million is currently lost through house purchases that do not go ahead due to problems found by buyers during the house buying process. 

The government expects that by providing the purchaser with more initial information fewer people will change their mind later, and that the time it takes for the buyer's conveyancer to carry out the legal work should also be reduced.

The Packs will directly address:

• Consumer dissatisfaction – nearly nine out of 10 consumers are dissatisfied with the present process;

• Lack of transparency – at present key information about the property only becomes available after terms of the sale have been agreed;

• High transaction failure rate – 28 per cent of property sales fail after terms have been agreed;

• High costs of failed transactions for consumers – over £350m lost a year;

• Slow transaction process – twice the European average;

• Uncertainty – 60 per cent of property sales are in chains. Delay or failure in one has a knock-on effect through the chain.

Other direct benefits for home buyers and sellers:

• Consumer confidence – estate agents marketing homes with Home Information Packs will be required, for the first time, to belong to an approved redress scheme. This means more peace of mind and a better standard of service for consumers who will be able to complain to an independent industry body if they’re not happy with how they have been treated.