Making HIPs more innovative

by Gerard Buckley

A tougher property market requires a more innovative approach to HIPs, which is why agents should be devising ways to make them more commercially viable.

The reaction to the role Home Information Packs have played in the home buying and selling process to date has been mixed, with commentators focusing on the benefits to consumers and their impact on the environmental credentials of our properties.

What is often overlooked is what the packs have to offer the industry itself. Securing industry support is essential and will undoubtedly speed up the intended advantages of the packs for the market and the consumer.

The commercial side of HIPs is therefore an important consideration for HIP providers, estate agents and other parties providing the packs to consumers.

This is particularly true in the current market, where estate agents’ income has generally fallen and they are increasingly having to find alternative revenue streams. As well as bringing improvements to the property industry, HIPs should and can be profitable, so agents should be viewing them as a business opportunity.

Revenue boost

Seen purely in a commercial light, HIPs can and will offer agents the chance to generate additional revenue and increase their client base by improving their business offering. Agents are able to supplement their income with commission if they offer a HIP service through their HIP provider.

Although we are not talking about large amounts of commission per property, in this tougher climate, closely managed revenues become vital tools and the additional income certainly adds up over the course of a year. Furthermore, offering an integrated and efficient HIP service is a way for estate agents to differentiate themselves from their competitors. Due to the current state of the property market, agents really do need to do whatever they can to retain their business levels and, where possible, attract clients with additional or unique propositions.

It is therefore unsurprising that many of our clients are offering ancillary products and services with their HIP. Once estate agents are already offering HIPs, they will also find it easier to cross-sell complimentary services such as removals, surveys, lock changes or conveyancing.

Third party ties Larger agencies looking to make the most of the commercial opportunity presented by HIPs can also employ a Domestic Energy Assessor. This will enable them to make a commission on Energy Performance Certificates that are compulsory for all properties they put up for sale and from October this year, all marketed lettings properties. If an agency has several branches in different areas across the UK and therefore needs to produce a significant amount of EPCs, it is likely to make a profit even after the DEA has been paid an annual salary.

To further boost agents’ EPC income.

HIP providers can also place the employed DEAs on a panel to prepare EPCs on other properties in their region. Speed of service Recent research has shown that HIPs are helping to speed up property transactions and our own data supports this.

With smoother and faster processes involved in the selling of a property and fewer failed transactions, the agent’s role also becomes simplified, which enables them to spend more time working towards securing their next sale. As the production and provision of HIPs become second nature and the improvements to the home buying process become greater, agents may find themselves able to cope with a greater volume of clients.

As with all initiatives or services intended to bring improvements, HIPs have needed to be commercially viable for the sectors providing them, to ensure their success. It will be the agents that take advantage of the business opportunities provided by HIPs who will be able to ride out the tightening of the market most successfully.

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