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Consumer Home
19 May 2006
Building societies have railed against the compulsory introduction of Home Information Packs (Hips) next year.
The packs will have a negative effect on the housing market, adding extra costs without any benefit, claim chiefs of industry body the Building Societies Association (BSA).
A survey carried out in April found that 84 per cent of building society chief executives expected the new packs to have a negative effect on the market.
Under new legislation, it will be compulsory for home sellers to provide a Hip containing information about the property for potential buyers. Estimates place the cost of the packs at £600-1,000.
"With so much uncertainty amongst consumers and the industry over how Hips will work, it seems wrong that it will be an offence to seek to sell a house without a Hip," said BSA director general Adrian Coles.
"Making them voluntary will lessen any negative impact on the market and minimise the effect of any problems that may occur."
Though intended to reduce the number of housing transactions falling through and reduce upfront costs, the BSA claims that the packs could dramatically reduce the number of houses going up for sale.
If extra housing costs could affect you and your credit commitments, order your credit report to check the status of your finances.
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