Hips hit by fresh controversy

Mortgage lenders' concerns over the objectivity of information contained within Home information packs (Hips) are causing many homeowners to effectively pay twice for the new governmental scheme, it has been suggested.

Because sellers are likely to view their property in a favourable light in order to encourage a sale, some lenders say that the local authority search must be conducted by buyers in order to ensure accuracy.

This means that borrowers are being required by the likes of HSBC to spend at least £200 on paying lawyers to conduct the search if they want to secure a home loan.

"This is further evidence of the government's flawed implementation of Hips," said a spokesperson for the Royal Institution of Chartered Surveyors (Rics), according to the Evening Standard.

"We need home buying reform, but the government needs to step back and consider any evidence it has about implementation so far, in cooperation with the industry and other interested groups," the spokesperson added.

A legal challenge from Rics had originally delayed the rollout of Hips from June 1st to August 1st.

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