With the imminent launch of Home Information Packs in June this year, fears abound that brokers who are not involved in the scheme will see a fall in revenue.
Bob Singh, managing director of Chess Financial Services, says: “With HIPs coming into the picture this year, the housing market landscape will change. Estate agents pose a threat and brokers who don’t have a tie-up with an estate agent or a HIP proposition face being squeezed out.
“We must educate the public to get HIPs done independently of estate agents, so they can retain their freedom of choice.”
Wolverhampton-based brokerage Promise Finance shares these concerns and says brokers must establish relationships with estate agents and other third parties or they could see a sharp drop in revenues. Business partnerships established by rivals could win over their prospective customers.
Steve Walker, director of Promise Finance, says: “By working together to fulfil clients’ HIP requirements and financial needs, estate agents and brokers can maintain control of the sale process. This will help with client retention and maximise revenue.
“But brokers must be quick off the mark and hitch themselves to a HIP provider and a local estate agent.”