Effect of HIPs will depend on the educational programme

From Alan Dring

In the wake of the Association of Mortgage Intermediaries chairman John Gummer’s “load of rubbish” comment about HIPs I was encouraged by Stephen’s Knight’s letter in the May 29 issue of Mortgage Strategy.  

Nobody has anything to gain from seeing HIPs fail. All that will result from that is confusion and yet more lack of confidence in the industry on the part of consumers.

I can’t speak for all HIP providers but I’m confident most would agree with Knight’s comments that we have to know as much as possible about the effect of HIPs on the market ahead of their launch.

When it comes to the supply of second-time buyer properties, I think the effect of the packs will be determined by the quality and the focus of the consumer education programme that gets underway in September – too late in my opinion.  

If HIPs speed up the house buying and selling process and reduce needless costs consumers will see their introduction as worthwhile.

Alan DringSales director

eConveyancer

By email