Rosie Murray-West, the Business Correspondent of The Daily Telegraph reports today concerning the risk that Home Information packs will  'destabilise the housing market' and prevent first-time buyers from getting onto the property ladder.  Kirstie Allsopp, the presenter of Channel 4's Location Location Location, is reported as saying that,

"[Home Information Packs (HIPs) would not] do any of the things the Government promised it would such as getting rid of gazumping and speeding up transactions.  What is happening here is that a £600 million industry is springing up overnight and it is going to cost both buyers and sellers".

Charles Smailes, the President of the National Association of Estate Agents (NAEA) urged,

"…[the] Government to start paying attention to the concerns of its Opposition, the entire property industry and the public who, according to NAEA research, will not welcome the introduction of HIPs."

According to Mr Smailes, a recent survey by the NAEA suggested that 73 per cent of sellers would think twice about putting their property on the market if it required a pack, which would result in fewer properties on the market and a rise in already inflated prices.

A recent survey undertaken by the anti-HIPs campaign group SPLINTA was more telling.  SPLINTA members analysed 1,870 property transactions negotiated in February 2006. By the middle of May 2006, 1,272 (68%) had successfully proceeded to exchange of contracts. 352 (18.8%) sales had fallen through, leaving 266 (14.2%) properties withdrawn or still on the market. 137 (7.3%) of transactions were the subject of a renegotiation of the agreed price between acceptance of the original offer and exchange of contracts.

An examination of the figures disclosed that transactions had broken down for the following reasons:

(a)       the seller received a higher offer from another buyer - 16 (0.8%);

(b)       an adverse survey report - 41 (2.2%) ;

(c)       a lender’s adverse valuation inspection - 15 (0.8%);

(d)       the buyer could not secure a mortgage - 31 (1.7%);

(e)       a related sale or purchase did not proceed (a "broken chain") - 76 (4.1%);

(f)         a change in the circumstances of the seller - 65 (3.5%);

(g)       a change in the circumstances of the buyer - 108 (5.8%).

These figures established that a Home Information Pack might have helped to save only 25 (1.4%) transactions.

The Government continues to spin the line that HIPs will improve the buying and selling of property but it is manifest that these packs will do no such thing.  It compounds the offence by dismissing out of hand constructive criticism and repeatedly besmirching expert opponents as having a "vested interest". The Government is in a headlong rush to implement the scheme notwithstanding the very clear dangers. Nick Salmon of SPLINTA has urged the Housing Minister Yvette Cooper to "exercise good judgement and call the [HIPs] scheme in for review."  Some hope.

The Great Home Information Pack (HIPs) Swindle