Insurance News Archive
New £1k bill for Hips
With critics arguing that the soon-to-be-introduced Home Information Packs (Hips) will cost home owners an additional £600 to £1,000 to sell their property, campaign groups are warning of the negative impact they will have on the UK housing market.
The government claims Hips will provide buyers with more upfront legal information about their purchase, therefore reducing delays and costs. They will also put an end to the practice of gazumping, ministers say, where sellers increase their asking price at the last minute.
From next June anyone selling their home will be required to provide a Hip. But the average price of a Hip is £600, or as much as £1,000 for expensive homes in the city, and anyone who attempts to sell their home without a Hip risks a £200 fine.
The campaign group Splinta (Sellers' Pack Law Is Not The Answer) says that Hips will simply add to the already high cost of selling a property and will do nothing to prevent gazumping and other housing market tricks.
Nick Salmon of Splinta said: "The Government says Hips will be a magic cure for the problems incurred in home-buying, when in fact they will be an expensive disaster.
"It's estimated the number of properties for sale will fall by a third as sellers are deterred by the cost of a pack. And that will cause massive house price inflation," he stressed.
12 Jun 2006