Insurance News Archive
Consumers could still count cost of 'free' Hips
The forthcoming introduction of Home Information Packs (Hips) is likely to cause many estate agents to offer them for free, while increasing their fees to cover the cost.
According to director of HIPs Direct, an online agency which provides Hips throughout the UK, many organisations will follow in the footsteps of Hamptons International which revealed this week it would cover the cost of Hips for its customers.
Howard Garde explained: "It's been on the cards for a while, and certainly the Hip is going to be used as a loss leader for all sorts of different services from surveying, to estate agency, to mortgages possibly."
Despite the opportunity of free Hips, Mr Garde warned that, as is so often the case in the financial world, the costs will eventually find their way back to the consumer.
"There will be every conceivable combination of offers out there, but the fact remains, somewhere along the line there are costs attached to this Hip, and those costs will be passed on to the customer," Mr Garde explained.
As a result, he suggested that some home sellers "would be better off getting their own Hip and going and discussing fees with an estate agent".
From June 1st of this year, Hips will be a mandatory part of the home buying and selling process.
20 Apr 2007
