Estate agents and HIPs; two things guaranteed to provoke some sort of response...

Now it appears that even HIPs are falling prey to the ever tightening financial situation. That is because estate agents who offered mandatory sellers' packs (HIPs) at no upfront cost are now pulling out of the scheme; they fear they won't get back the £400 cost when the property fails to sell - something which is altogether too common these days.

Jeff Smith, CEO of HIP Payment Services, said: 'We expect the market for free home information packs to fall from half to about 10%.'

All this comes amidst further evidence showing that estate agents are struggling with the credit crunch (something which won't upset too many of you).

Share trading was suspended in Humberts, one of Britain's largest agents last week and it sparked fears that the chain is about to close branches or put some divisions into administration. Other agents, such as Connells, have raised their fees to offset the drop in buyers and sellers.

Movewithus, an online network of independent estate agencies, has estimated that up to 30% of the UK's 12,000 estate agents will close by next year (which may please many of you who seem to have a special hatred for estate agents that is equal to the fire of a thousand suns)

David Pank, sales director of Leeds-based Manning Stainton spoke about the current situation:

'We are losing 30 to 40 sales a month because buyers cannot get a mortgage. And we have clients who are having to sell their homes because they do not have a big enough deposit to remortgage.'

David Smith, at Dreweatt Neate, said it was the 'middle market' (houses between £300,000 and £500,000) where sales had really slowed, 'There is less money around and mortgage difficulties mean we have really seen a drop in business in this segment.'

The cost of HIPs is also proving prohibitive for those of you who are struggling to meet your mortgage payments as Daniel Carter, managing director of Jonathan Hunt Estate Agents said:

'We had one client a few weeks ago who was having problems paying her mortgage and wanted to put her home on the market. 'She couldn't afford the upfront cost of the HIP and couldn't defer payment because of problems with her credit record.'

Many estate agents offer a service that allows you to defer paying for the HIP for 10 months or until your property is sold; though the cost of deferral adds around 10 - 15% to the cost of a HIP.

So, do you have any sympathy for estate agents woes? After all they are just trying to make a living too.

Why not let us know what you think in the comments below?

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