Handling HIPs
by Michael Garson

The batch of changes announced by Margaret Beckett, one of long line of housing ministers, on 8 December 2008, were intended to bring the legislative programme for HIPs to an end by ‘tidying off’ remaining loose ends from 6 April 2009. That has not been achieved, although further attempts at reform now seem likely to be deferred until a new administration takes the reins in 2010.

The market was unimpressed with HIPs before the economic downturn took hold, and with current low transaction volumes, there can be little excuse for compliance failures by HIP providers. Solicitors apart, HIP quality standards presently appear to be low, and neither buyers nor sellers have a high regard for the usefulness of the HIP.

The property information questionnaire (PIQ) is the latest attempt to engage the consumer in the process, but it remains unrealistic to expect buyers to engage with detailed information until they have agreed a price and found financing for their new home. It comes as no surprise that lawyers place little credibility on home-made or raw information provided by sellers to low-quality HIP providers at an unidentified point in time, prior to marketing.

It appears that only occasionally does the HIP perform any useful role in current market conditions, and apart from research carried out into the information contained in local searches and the next report due from the Office of Fair Trading, this is a time for further policy consideration before the next general election.

Michael Garson
Property Section Executive Committee
Partner, Kagan Moss & Co                        
September 2009