Insurance News Archive
Hips dismissed as "ridiculous"
The government's introduction of compulsory Home Information Packs (Hips) next year has been dismissed as "ridiculous" by the Building Societies Association (BSA).
The packs, which are due to become standard practice next year, are intended to provide prospective buyers with all the basic information they need to know about a property.
However, building society chief executives are claiming that Hips will be costly and that they do not achieve the government's targets to speed up transactions and reassure buyers.
Figures show that 84 per cent of building society chief executives want Hips to be made voluntary as they feel that there may be a glut of properties for sale before their introduction which may cause a blip in house prices.
"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," remarked Adrian Coles, director general of the BSA.
He went on to say that it is "ridiculous" that someone who is 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," he concludes.
19 May 2006
