HIPS not fit for purpose

In his review of the housing market, published this morning, Sir Bryan Carsberg has called for the scrapping of home information packs (HIPs), and regulation of estate agents and others in the process who are currently subject to voluntary regulation.

Presenting the report this morning, Carsberg argued the costs of Home Information Packs exceeded any potential benefits, noting that the information contained could very quickly be out of date. However, he expressed the hope that the packs may be able to be used on a voluntary basis, with providers developing them to the extent that they offer something which has a recognised value to homebuyers.

Carsberg also called for the establishment of a regulatory body to oversee estate agents and letting agents, with a minimum qualification requirement. He commented,

"Many people think we have enough regulation already, but I believe that if well designed and well administered, it can be a positive force, and can make the industry work better.

Referring to research from the Office of Trading and consumer group Which?, Sir Bryan concluded that the current transaction process is unsatisfactory for those who use it.

Gillian Charlesworth, director of external affairs at the Royal Institute of Chartered Surveyors says,

"Sir Bryan’s review highlights a number of key areas where the current approach is clearly failing.

"The processes for regulation and redress do not go far enough to protect the consumer and we agree that participation in regulatory and redress schemes needs to be both consistent and universal. They should include all estate agents, letting agents, managing agents and landlords.

Related Articles

UK Financial Solutions New Mortgage Sourcing System Goes LiveBOE increases quantitative easing and holds the base rateRise in Intermediary Mortgage Products Signals a Stabalising MarketHousing Market Improves SlightlyNationwide launch new variable rate mortgage