HIPs 'madness' is worsening the housing crisis, say estate agents

They said parts of the packs – which were introduced last August to provide key information to home buyers – are ‘madness’.

They claimed many sellers are being forced to fork out for more than one of the £350 packs because the information contained in them is soon rendered out of date by the troubled property market.

'Not fit for purpose': A HIPs inspection being carried out

The National Association of Estate Agents, which has about 10,000 members, said HIPs are ‘not fit for purpose’.

Chief executive Peter Bolton King said: ‘With the economic situation worsening and the property market still suffering, we are calling on the Government to take urgent action on HIPs.

‘Quite simply, the Government tried to force square pegs into round holes and the slower property market is making this situation worse.’ HIPs include an

energy performance certificate for each property as well as title deeds, leases and list of planning applications in the area.

But Mr Bolton King claimed many buyers consider the packs to be of such little value that they do not even ask for them when viewing a property.

A simplified HIP should include only a sellers’ questionnaire, an improved Energy Performance Certificate and the Land Registry title and plan, he added.

Gillian Charlesworth, of the Royal Institution of Chartered Surveyors, said: ‘One of the many things the Government needs to do to aid the failing housing market is fundamentally to reform HIPs to ensure that they are fit for purpose for all properties, in all market conditions.

‘Consumers are paying for legal searches twice because, in the current slow market, they are often out of date by the time a sale is agreed.

‘These legal documents must be taken out of the packs and left to buyers and their advisers to obtain at the appropriate time during the transaction.’

She also urged the Government to drop the requirement for homeowners to have a HIP before they can put their property on the market.

A Communities and Local Government spokesman said: ‘HIPs are already bringing benefits to consumers by providing important information to help families cut their fuel bills and carbon emissions.

‘They have also reduced the price of property searches by increasing transparency in the home buying and selling process.’

A report by consumer group Which? published earlier this year found HIPs are of little value, confusing and do not have the confidence of the public or estate agents.

The Law Society has called them the ‘worst piece of consumer legislation in 50 years’.

A survey this month also found that a majority of house buyers – 57 per cent – think HIPs are a waste of time. The scheme was opposed by estate agent trade bodies, solicitors and the Council of Mortgage Lenders.