HIP controversy sparked by TV investigation

20/05/2009

Struggling homeowners are being hit with big hidden costs for their Home Information Packs (HIPs), it has been claimed.

Fees of up to £100 are being added to the products which are compulsory for all home purchases in the UK, Channel 4 News reports.

The investigation suggests that the extra costs are caused by "secret commissions" paid to estate agents by HIP providers in exchange for them sending buyers to their firm.

HIPs are packs of information, which must include documents such as details of searches and an energy efficiency certificate, that are exchanged at point of sale.

The revelations come at a time when buyers are facing the financial challenges of the credit crunch and the downturn in the housing market - which has made mortgage financing tighter and cheap loans harder to come by.

Ashley King, chairman of the Association of Home Information Pack Providers (AHIPP), issued a response to the report yesterday.

"Through its HIP Code, AHIPP has always been committed to ensure that the standard of HIP provision amongst its members is consistently high and provides full protection for consumers," he said.

"The vast majority of HIP providers subscribe to the code and we would encourage any consumer, agent or other professional to only use Home Information Packs that are provided by HIP Code subscribers."

Tags; Housing Debt and Bills, Young Family Finances,

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