Half of IFAs lack HIP provision
Results of the PMP IFA HIP Awareness Index, done in association with Easier2move, showed:
· With just over 13 months to go until HIPs become compulsory, 98 per cent of IFAs are keenly aware of what Home Information Packs are (estate agents 88 per cent). With only 2 per cent unaware of HIPs, it is a positive sign that those in the industry will be well positioned to advise their clients on this issue.
· However, almost half (45 per cent) of IFAs have made no preparation for the introduction of HIPs and nearly a third (31 per cent) are waiting until closer to the launch. This illustrates a trend amongst sceptical IFAs who believe that there is still a chance that HIPs will not become compulsory in June 2007. A quarter (24 per cent) are taking a more pragmatic approach and have begun making provisions for their launch.
· When asked if they believed that the introduction of HIPs would result in greater competition for mortgage business from advisers based in estate agents, the response was more positive. Over half (53 per cent) thought that there would not be an increase in competition as this already happens so it will be unlikely to increase. A third (35 per cent) are expecting an increase, whilst 12 per cent were unable to offer an opinion either way.
Bob Scott, ceo at PMP, said: “It is encouraging to see that the vast majority of IFAs are aware of HIPs, as they need to be aware of all the issues which may affect both current and potential clients. With the deadline for their introduction fast approaching, IFAs need to be informed and educated on the issue and research will help them with this.
“It is disappointing that almost half of IFAs have made no preparation for HIPs. The clock is ticking and it is imperative that efficient systems are in place for when they go live in June 2007. Only a quarter of those questioned are making provisions with another third planning to do so nearer the time. It is imperative that individual IFAs as well as networks take steps to prepare as this is not an issue that is going to go away.”
Karen Babington, marketing director, Easier2move, said: “It is interesting to see that over half of IFAs are not expecting an increase in competition from advisers based in estate agents. Popular opinion is that there is already fierce competition and so the introduction of HIPs is unlikely to make a significant difference.”