AHIPP claims Channel 4 investigation misunderstands 'the nature of commerce'.
The Association of Home Information Pack Providers (AHIPP) has criticised a Channel 4 investigation which claimed that estate agents are seeking commissions for recommending particular Home Information Pack (Hip) providers to clients.
Hips are designed to provide potential buyers with all necessary information about a property and were brought in to England and Wales in 2007. From April this year they have been a legal requirement.
Channel 4 News claimed that it had spoken to a Hip provider who is "regularly approached" by estate agents looking for cash to recommend the company. The broadcaster also said it had documents showing a deal between a Hip firm and an estate agent to add a commission to the packs, "which is totally hidden from the vendor".
In a statement released following the report, the AHIPP criticised the investigation. It read: "The implication that the retailer's price can never be higher than the cost of the goods supplied is to misunderstand the nature of commerce."
The statement added: "It is the estate agent who determines the retail price of the Hip and the estate agent who is legally responsible for ensuring a Hip is in place before the property can be marketed."
Estate agents "may or may not include a mark-up" in the Hip price and "consumers are free to shop around for the overall service and Hip price that suits them best", the AHIPP explained.
