According to propertyfinder.co.uk research, over two thirds (70 per cent) of agents say that HIPs are disrupting the housing market, while 84 per cent have gone further and called for the Packs to be abolished altogether.
Costing sellers an average of £350, the Packs have met with fierce opposition from certain industry bodies, as well as whole areas of the property market. The scheme has been called a 'complete shambles' by propertyfinder who say that 51 per cent of sellers do not know they need a HIP when they instruct the agent to market their property.
Warren Bright, chief executive of propertyfinder.com said: “Estate agents across the country can see HIPs are simply not delivering and want them abolished. Sellers don’t know what they are and buyers ignore them. Now this discredited scheme is being extended to all properties, the confusion will only deepen.
"For the government to be heaping new burdens on the property market at a time when it is already feeling some strain is beyond belief. It should leave the housing market alone, not tie it up in red tape.”
Stewart Lilly, president at the NAEA added: “We are extremely disappointed - the government seems hell-bent on pressing ahead with these ludicrous plans, which it has been warned time and time again are not the answer. Meanwhile, in giving such short notice for this final phase, the CLG has demonstrated its total lack of respect for the industry and homeowners alike.
“In the announcement today, the CLG made reference to an ‘independent report’ on HIPs which found ‘no evidence of impact on transactions or prices’. I would be very interested to see this report, as it directly contradicts our own findings and those by others in the industry. If the report is as positive as the government suggests, then why has a bigger deal not been made of these findings?
“Also today, the CLG highlighted the benefits it imagines there will be for first time buyers. But what about first time sellers? They are already faced with huge expenses as they trade up, most notably surrounding stamp duty. The cost of a HIP on top of this is an unfair and unnecessary extra. The other point to consider is that if first time sellers stay out of the market reducing the supply of more affordable properties available, then the situation will be even worse for first time buyers than it is at the moment.
“A small ray of light today is the decision to extend first day marketing until 1 June 2008. This will allow some breathing space for the market, but is in no way a solution to any part of the HIPs fiasco. The announcement on leasehold documentation will also be a slight help, but at the same time makes a mockery of the reported purpose of HIPs, which is to give buyers information upfront.
“The incompetence and irresponsibility of the government over HIPs seems to know no limits. Why can’t they admit they got it wrong and let us work with them to get things right?”
