Insurance News Archive
Calls for Hips payment shake-up
Home information packs (Hips) have led a troubled life ever since they were first suggested in Labour's 1997 manifesto and even their implementation ten years later has not brought an end to the arguments.
A shake-up of the payment scheme has been called for even though the packs were launched just over a month ago as home sellers are unhappy about having to pay upfront.
According to Hip Payment Services, two thirds of home sellers who responded to a survey instead wanted a payment deferral system to be implemented so that they are not charged until their home has been sold.
"Traditionally, the majority of costs incurred with selling a home, such as estate agent and solicitors fees are charged at the end of the process, typically when the vendor's sale has gone through," said Jeff Smith, chief executive of Hip Payment Services.
He added that most costs from a Hip are not new, but had normally been met by the buyer instead of the seller and payment was only due after the transaction was completed.
"Since Hips went live in August, vendors have been reluctant to pay for the pack upfront, when their home is first put onto the market," Mr Smith said.
Hips have applied to four-bedroom homes since August 1st and were recently expanded to affect three-bedroom homes as well, meaning sellers have had to meet the average £350 of putting together a pack before getting any funds from their home sale.
21 Sep 2007
