The DCLG is trying to ‘cover-up’ research findings into HIP Area Trials, claims the NAEA…

Last week the Government released details of the HIPs area trials and the NAEA was infuriated that the CLG decided to try to use agents as a scapegoat for the problems of HIPs.  However, as the NAEA suspected, a full reading of the research document reveals much more than suggested by the CLG’s own press release.

Peter Bolton King, chief executive, NAEA, comments, “Clearly desperate to say something positive, the press release concentrated on the seller’s perception of the HIP.  ‘Eight out of ten felt that it contained everything they expected’ – well I would hope so, it is after all their house!  Is this really as positive as it gets? Nowhere did the press release concentrate on the buyers.  After all, the legislation was actually brought out for the benefit of the buyer in order to give them up-front information about the property they are looking to buy.” 

HIPs do not improve the process

Mr Bolton King continues, “Only 29% of sellers who actually sold a property with a HIP felt that it made the process more efficient.  As far as Buyers were concerned, only 20% felt that the HIP sped up the buying process and 41% of buyers thought that a HIP made the buying process more difficult.  Perhaps one of the most telling figures was that 76% said that the HIP had no effect on their decision to buy!”

The NAEA is convinced that it is extremely important for the estate agency industry to engage with government.  However, this research confirms what the NAEA and its members have consistently said, that HIPs are not the way to improve the buying and selling process.

Peter Bolton King, concludes, “It is a pity that the Government chose to ignore what we and other stakeholders said to them over the last few years. At the end of the day it is the consumer who is losing out.”