Estate Agent Today

A probe by Birmingham City Council trading standards has resulted in two agents being fined because they did not produce HIPs. Both agents have also been referred to the OFT.

The investigation also claimed that 30% of HIPs were unsatisfactory.

But the findings have come under fire because the HIPs were analysed by the Property Codes Compliance Board – which found that PCCB regulated HIPs are better than non-PCCB regulated HIPs.

The PCCB insists it measured the HIPs objectively against regulations.

However, critics point out it is a voluntary trade body. They point out that not all HIP or personal search providers belong to it, but that membership is a requirement of membership of AHIPP.  They say that HIPs provided by two of the largest five estate agency groups are not covered by the PCCB whilst HIP provider LMS has withdrawn from the scheme.

One industry player, who is a member of neither body, called the research at best unscientific, and said he was staggered that the PCCB had been allowed to analyse the HIPs. He said: “Surely this was the role of trading standards to say whether these HIPs comply with the regulations or not.”

The results of the investigation are already being used in marketing by the PCCB, which sent out an email to promote a workshop in Leeds.

It said: “The results show PCCB registered Code subscribers in a very positive light when compared to non-registered firms and the registered firms involved are to be commended for their strong performance.

“It is also pleasing to note the endorsement by the Head of Birmingham Trading Standards that they ‘...recommend that both buyers and estate agents should choose a HIP Code registered firm, as our survey has found these to be the most trustworthy’.”
In Birmingham, trading standard officers identified properties in 40 agencies and asked to see the HIPs.

A total of 37 were produced. One property did not have a HIP because it was on the market before the legislation was introduced. The other two should have had HIPs, but were marketed without.

The 37 HIPs were then handed over by trading standards to the PCCB for analysis. This found that 26 HIPs were rated satisfactory or reasonably satisfactory, with the remaining 11 rated unsatisfactory.

According to the analysis, common problems with the faulty HIPs included issues with the searches.

Trading standards in Birmingham said the exercise had been the most comprehensive probe yet into HIPs enforcement.