BSA: Home Information Packs 'ridiculous'

The government's introduction of compulsory Home Information Packs (HIPs) was dismissed as "ridiculous" yesterday by the head of the Building Societies Association (BSA).
The packs, which are intended to provide prospective buyers with all the basic information they need about a property, will cost homesellers as much as £1,000 each from June next year. Selling without a HIP will be punishable by a large fine.

Building society chief executives say that HIPs will be costly and will not achieve the Government's objectives to reassure buyers or speed up housing transactions. They also warned that the packs could create a sudden drop in the number of properties on the market.

Research showed 84% of building society chief executives want HIPs to be made voluntary. They fear that there could be a glut of property for sale before their introduction next year, creating a downward blip in prices. This could be followed by a rise in prices.

By making HIPs voluntary, building societies argue, the economic impact of their introduction would be minimised as buyers and sellers would be able to fully acquaint themselves with the new system.

Adrian Coles, director general of the BSA, said: "People's homes represent their most important asset. As such it is imperative that they can have confidence that there will not be any unexpected fluctuations in the market.

"It is ridiculous that someone selling their home without a HIP will be punished by a fine. If people feel that HIPs will be of benefit, they will opt to have one without the need for compulsion."

Source Laurie Osborne - In2perspective Limited