CML: Research shows poor consumer understanding of HIPs

Consumer focus group research published at the end of last month by the Department for Communities and Local Government found that few participants had read through a HIP for their property in any level of detail.

Most assumed that their solicitor would alert them to anything they needed to know and so were not concerned about what was in the pack.

A majority had first heard about HIPs in the news and recalled that media coverage had focused on the perceived problems of HIPs, such as the extra costs for sellers and an initial shortage of pack providers.

Some participants had found their estate agents were negative or apathetic about HIPs. Those that had not yet seen a pack for themselves were more likely to have retained these negative perceptions, based on word of mouth rather than concrete experience.

Some buyers and sellers thought that the energy performance certificate was the main focus of the HIP. The government believed this was likely to be as a result of estate agents highlighting this part of the pack over others. Some consumers had assumed that a HIP would include a survey and were disappointed to discover this was not necessarily the case.

There was further confusion about whether HIPs were now compulsory for all properties and about how long they had been in place.

The most commonly cited advantage of the HIP was the belief that the requirement to produce one would ensure greater commitment from sellers and prevent those who were not serious about selling their property from putting it on the market.