Hips will be "cost neutral"

Posted: 21 Jun 2006 09:41:46 GMT

            Property News - Hips will be "cost neutral"

The Conservative party has been slammed for its scaremongering tactics in relation to the potential cost of a Home Information Pack (Hip).

According to Mike Ockenden, director general of the Association of Home Information Pack Providers (Ahipp), speculation that Hips will cost vendors an additional £1,000 is "intended to arouse unnecessary fear among consumers".

Mr Ockenden claims that house sellers will actually pay around £700 for a Hip, but he stresses that this is not even a new cost.

He argues that one third of the cost of a pack is currently incurred by house buyers procuring searches. Meanwhile, another third of the cost will be offset because of the reduction in the amount of money wasted on aborted transactions.

The final third, he argues, is already being spent on conveyancing and valuation fees, meaning that Hips are effectively cost neutral.

He goes on to suggest that selling a house will actually become much easier with the introduction of Hips next year, with fewer properties failing to sell thanks to the enhanced transparency.

"Hips will strongly benefit the consumer and it's about time that this is recognised," he added.

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