Will HIPs Regulation Lead to a Better Market For Conveyancers? Friday, January 28, 2011

After being in existence for over a year and receiving almost nonstop criticism from both opposition political parties and conveyancers alike, how are Home Information Packs (HIPs) faring as the new second stage packs come into effect? Branded as unnecessary red tape by the main body representing estate agents, the packs' defenders have long sought to play up the positive aspects of the scheme including faster processing times and increased buyer knowledge.

The Property Codes Compliance Board (PCCB) is one such supporter of the scheme who sees the packs having a positive influence on the market. According to their new research, the packs, criticised for being expensive, are actually much less costly than critics predicted originally and with new regulation changes are set to become more efficient.

The PCCB have recently welcomed the decision by the Association of Home Information Pack Providers (AHIPP) to open up their database of HIP providers, which the PCCB argue will allow for more consumer choice and will create a far more efficient market for HIPs, with buyers and sellers being able to choose from a wider range of competing providers.

"It's good to see the industry take the lead in responding to new developments in the market. This move will extend the coverage of the HIP Code at a time when companies are seeking imaginative and cost effective ways of providing HIPs that comply with the law. Consumers should take comfort from the assurance provided by the presence of the Code logo on a wider range of products and from the knowledge that subscribers are subject to exacting standards overseen by an independent body." Said Richard Footitt from the PCCB.

Will new regulation help the market? The PCCB, which oversees the regulation of the HIP providers, said that in recent months they had taken firm steps to improve the overall quality of the HIPs market by introducing tough new regulation that will prevent companies from cutting corners with their service. Footitt noted that for the first time, potential providers will have to submit sample HIPs in order to become accredited.

"The first phase of HIPs comes to an end early in April, and the industry needs to be ready to respond to the opportunities that the new statutory framework will bring. The PCCB will continue to emphasise the benefits of commissioning HIPs from Code subscribers. And we will increasingly highlight those practices that expose the public to unacceptable risks when they come to buy and sell their home." Added Foottitt.

With house sales declining almost month on month the conveyancing sector is under much greater pressure than ever before but as the regulator points out, the temptation to cut corners must be resisted and instead should be replaced by increased efficiency to make things work,

"Tough market conditions inevitably bring pressure on the industry to review costs and to search for different solutions. The way forward though is not to cut corners and to lower standards and expectations. Consumer confidence in the industry will come from delivering quality services and products at the right price and at the right time, at the beginning of the process and until contracts are signed."

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