Discussing recent comments made by the Tories on HIPs, McKendrick said the criticism levelled at the initiative was detrimental to consumers. He said: “This is all incredible political opportunism by the Conservative Party at the expense of consumer empowerment. The HIP is the most important home buying revolution in decades for UK consumers and will make significant and long-overdue advances in helping them make what is for many, the most important investment decision in their life. Currently, over £200 billion worth of homes are bought blind every year by consumers who have no idea of their condition.”
McKendrick insisted the HIPs scheme would provide consumers with more information and power when buying a home. Currently, less than 15 per cent of all house purchases involve a survey of condition – the equivalent to over £200 billion worth of property. According to the English House Condition Survey, it would cost £48 billion to bring all the homes in England up to a decent standard, while 26 per cent of homes lack adequate thermal insulation. It also revealed a £28 million backlog of costs for urgent repairs to homes.
However, Nick Salmon, head of Sellers Pack Law is Not the Answer (Splinta), said HIPs would disrupt the market because sellers would be put off by the cost. “Evidence shows over 60 per cent of sellers will not or may not sell after HIPs come in. The effect will be fewer homes for sale, a lack of consumer choice and rampant house price inflation. No matter how the government and providers – who stand to make millions of pounds a year from the pack – dress them up, HIPs are an expensive disaster in the making.”
