As the debate concerning the forthcoming introduction of HIPs rages on, Saga Home Insurance believed the scheme could face a backlash from worried homeowners as 47 per cent saying they are against HIPs.
With HIPs becoming compulsory for anyone selling a house with more than three bedrooms from this August, Saga’s research has revealed that the scheme could be liable to abuse. Almost three in four homeowners (74 per cent) say they would be tempted to market their four-bedroomed house as comprising ‘three bedrooms and a study’ in order to avoid the cost of compiling a HIP, even though they could be devaluing their house by £121,000 (based on the difference between the national average house price for a three and four bedroom house) despite the cost of a HIP costing around £400 - £700.
This shows the true sense of feeling the public have about HIPs, as the research shows that only 3 per cent claim to have ever lied in order to sell their home in the past, whereas a large proportion would consider bending the truth in order to escape a HIP.
When asked why they were against HIPs, half of all respondents (50 per cent) said they were unnecessary as the current process is adequate for anyone wishing to sell a home. Also three in four (74 per cent) felt that the absence of a home survey in the HIP meant the overall costs of selling a home would go up, as this would have to be done separately. In addition, half also said that they would be inclined not to trust the contents of a HIP, having been provided by the seller.
Commenting on the research, Andrew Goodsell, chief executive of Saga Group Ltd, said: “We have been all too aware of the trials and tribulations concerning the introduction of HIPs. We are absolutely supportive of any measures aimed at simplifying and speeding up the home-buying process but it’s clear that the general public still need convincing.”
