HIPs are 'the worst piece of consumer law for 50 years', says Which?

HIPs were promoted by the Government with claims they provide key information to home buyers and so speed up purchases.

But a report from the consumer group Which? today suggests they are of little value, confusing and do not have the confidence of the public or estate agents.

The findings echo a Government MORI poll which found 41 per cent of buyers thought the new packs actually make purchasing a new home more difficult.

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HIPs have been universally opposed by estate agent trade bodies, the legal profession and the Council of Mortgage Lenders.

And Which? quotes the Law Society today saying it believes the packs to be "the worst piece of consumer legislation in 50 years".

At one time Which? was among the cheerleaders for the packs. However, it withdrew its backing after the Government decided to remove the requirement to include a structural survey.

Which? now believes the rump of the pack has failed to match the promises of ministers.

It is calling for a review of the entire home sale process to come up with a new system that ensures buying a home is quicker, cheaper and easier.

The HIPs include an energy efficiency rating for the property, which requires a visit and survey by a domestic energy assessor.

There is also a local authority search of planning applications in the vicinity together with details of the title deeds of the property or any leases.

However the planning searches become out of date after four to six months, so they have to be repeated by the seller or buyer.

Many buyers consider the packs to be of such little value that they do not ask for them when viewing a property.

At the same time, estate agents routinely do not offer the packs to potential buyers.

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Principal public affairs officer at Which?, Mark McLaren, said: "In principle HIPs should help home buyers and sellers, but they are of limited value in their current form.

"Our snapshot survey suggests there's real confusion and a lack of confidence among home buyers and sellers and, most worryingly, by estate agents about HIPs.

"We want to see an independent review of the whole home buying process, to make home buying and selling easier, cheaper and quicker for consumers.

"It's been ten years since this was promised and not enough has changed in England and Wales."

Scotland will introduce its own form of HIPs in December this year.

These home reports will include a survey and a questionnaire covering useful information about the property.

The recent Government-funded MORI poll found that fewer than a third of sellers with a HIP felt it made the process more efficient.

As far as buyers were concerned, only 20 per cent felt that the HIP speeded up the buying process, and 76 per cent said the HIP had no effect on their decision to buy.