A recent Which Money report revealed that HIPs bought from estate agents could cost up to £300 more than HIPs bought from specialist providers.
Spicerhaart was found to charge £516 for a HIP on a two bedroom flat, nearly £300 more than Hip Save at £224. Halifax Estate Agents charged £413 for a HIP on a three bedroom property, compared to Fridays Property Lawyers at £189.
Eddie Goldsmith, senior partner at Goldsmith Williams, said estate agents made profits from HIPs because intermediaries did not give proper advice about them to consumers.
He said: “Estate agents are selling overpriced HIPs to consumers and are receiving high profits from them, which is unfair to consumers. Advisers can make massive cost savings for their clients if they point out that there are cheaper HIPs available in the market.”
Richard Barnett, senior partner at Barnetts Solicitors, said there were few benefits of purchasing a HIP from an estate agent.
He said: “I believe it is more time efficient and convenient for consumers that conveyancers deal with HIPs. Conveyancers can provide the HIP along with the conveyancing which avoids duplication of effort and delay. Brokers can play a role in informing clients of this.”
