Controversial UK property packs under scrutiny amid fears providers are cutting corners

Providers of UK Home Information Packs are cutting corners and failing to provide accurate and satisfactory information in a bid to save money, it is feared.

The organisation responsible for regulating HIPs warned it will be tough on those who abuse the system after an investigation in Birmingham found five out of six packs were unsatisfactory.

The Property Codes Compliance Board said it will take action against any search companies found to have breached its code and it is working with estate agents to improve standards.

It said there is concern that the credit crunch could be encouraging companies to take short cuts but these are professional people who should know better.

Its chairman, Richard Footitt also reminded estate agents that it is there responsibility to make sure the packs they are provided with are accurate and provide the necessary information.

'Consumers are not well served by those commissioning or producing sub-standard HIPs and searches, and the PCCB will act against any company registered with them where they have clearly breached the rules,' said Footitt.

'Over the past few months we have seen many more independent HIP and search providers enter the market, and we are well aware of the financial pressures that are encouraging short cuts to be taken by professionals who should know better,' he added.

Land Data, the company which support councils and other property information holders, said it could result in someone buying a house they might not otherwise have wanted.

'The consumer needs to be in possession of accurate, up to date information before making a decision on whether to proceed with a purchase of a property, especially in such a fragile market,' said Alex Fraser, Chief Executive.

'A Home Information Pack is supposed to take both cost and uncertainty out of a transaction, but, if the current findings are representative of the national picture, then HIPs appear to be having the opposite effect,' he added.

The stern warnings come after Trading Standards officers in Birmingham went into 15 estate agencies and asked to see the HIPs for each property. They randomly selected six reports and found six were unsatisfactory with missing or inaccurate information.

Birmingham Trading Standards have now written to the companies involved asking them to explain the inaccuracies and missing information.