HIPs NOT working say Industry |
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10th March 2010
An overwhelming number of conveyancers still dislike HIPs and regard them as having a negative effect.
According to new research among conveyancers by HIP provider MDA, which cannot have liked the results much, 81% rate HIPs poorly.
A large majority said that HIPs have had a negative effect on the conveyancing process in general, as well as on relationships with agents, on overall profits, and on the volume of instructions.
Half said their business would benefit if HIPs were scrapped, with only 6% believing their business would be negatively affected as a result.
Interestingly, if HIPs were indeed abolished, nearly half of those questioned reported that they would simply return to their pre-HIP practices.
Almost all (95%) did not rate a future for exchange-ready HIPs, saying they would still follow standard processes. Most of the conveyancers also dismissed the idea of pre-sale packs, saying due diligence would still be required.
The ongoing duplication of searches was also highlighted by the survey, indicating that scepticism of HIP searches remains an issue.
More than half of respondents ignored personal searches in a HIP and did their own local authority searches.
Eric Walker, Managing Director of Bushells agrees. "The number of applicants who actually ask to see a HIP even when offered is negligible. The problem is that much of the information means little to the average buyer who quite sensibly relies on their solicitor to examine leases, searches, title etc. Few people are really that interested. Had the Government included the Home Condition report, then it may have been of more use. All people want to know is where a property is, how much it is and that there are no hidden problems in the fabric. Even with this information, who would trust documentation provided at the sellers expense? Rightly or wrongly, that's the feed back received. Likewise with the Energy Performance Certificate. Pages of information advising how you can save £100 a year by spending 10 times as much really doesn't seem to generate huge interest either. Our view is that HIPs will probably become voluntary after the next election and will gradually fade away."
