Hip, hip ...awayMonday 9 July 2007
Hip, hip ...away
- One in two purchasers wouldn't trust the contents of a Home Information Pack (HIP), according to research from Saga Home Insurance
- HIPs open to abuse as three in four homeowners admit they would consider lying to get round the system
- Almost half the population opposed to the introduction of HIPs
As the debate concerning the forthcoming introduction of Home Information Packs (HIPs) rages on, research by one of the leading insurance providers for the over 50s, Saga Home Insurance, has revealed that the scheme could face a backlash from worried homeowners, with almost one in two (47%) saying they are against HIPs.
With HIPs becoming compulsory for anyone selling a house with more than 3 bedrooms from this August, Saga's research has revealed that the scheme could be liable to abuse. Almost three in four homeowners (74%) say they would be tempted to market their four-bedroomed house as comprising 'three bedrooms and a study' in order to avoid the cost of compiling a HIP, even though they could be devaluing their house by 121,000 (based on the difference between the national average house price for a three and four bedroom house) despite the cost of a HIP costing around 400 - 700.
This shows the true sense of feeling the public have about HIPs, as the research shows that only 3% claim to have ever lied in order to sell their home in the past, whereas a large proportion would consider bending the truth in order to escape a HIP.
When asked why they were against HIPs, half of all respondents (50%) said they were unnecessary as the current process is adequate for anyone wishing to sell a home. Also three in four (74%) felt that the absence of a home survey in the HIP meant the overall costs of selling a home would go up, as this would have to be done separately. In addition, half also said that they would be inclined not to trust the contents of a HIP, having been provided by the seller.
Commenting on the research, Andrew Goodsell, Chief Executive of Saga Group Ltd, said: "We have been all too aware of the trials and tribulations concerning the introduction of HIPs. We are absolutely supportive of any measures aimed at simplifying and speeding up the home-buying process but it's clear that the general public still need convincing."
Notes to Editors-
Figures based on Yougov research carried out between 6th June to 8th June 2007 on 2,091 UK adults.
UK national average 3 bedroom house costs 203,567 and 4 bedroom house costs 324,431. Figures taken from www.mouseprice.com as at 14/06/07.
For further press information please contact the Saga Press Office on: 01303 771529.
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