Competition: Law Society chief says firms have nothing to fear if they plan ahead

Home information packs (HIPs) remain a mystery to eight out of ten high street firms, research has revealed.


A survey of 200 firms, carried out by case-management system provider ConveyanceLink, showed the vast majority had little or no confidence in the process, with some 82% unaware of how HIPs and the legislation will work.


A similar number (79%) admitted that they were still uncertain as to what the key components of a HIP were going to be. More than three-quarters also said they did not believe HIPs would be ready in time for the 2007 implementation date.


Kevin Martin, Law Society President and joint chairman of its HIPs task force, said: 'This demonstrates there's still a major difficulty about letting firms know where we've got to and what we're doing.'


He said the Society had issued a lot of information to help practitioners prepare and run a series of road shows and seminars. More than 2,500 firms have expressed an interest on-line in Chancery Lane's bespoke HIP. 'Some firms are very geared up, but there is still an information gap,' Mr Martin said.


He added: 'No one is able to give a complete demonstration of what a HIP will look like, as the regulations have yet to be finalised by the government.'


Malcolm York, director of ConveyanceLink, said: 'Firms need to put in place the necessary IT infrastructure to offer HIPs and start building lasting relationships with local estate agents to ensure that they will benefit from the changes. It is possible that they don't realise the immense opportunity that these packs represent.'


Mr Martin added: 'The Law Society is promoting HIPs as a commercial opportunity. Whatever reservations we had, it is quite clear the government is going to go ahead and it is imperative that all solicitors are ready. As with every development, the firms that succeed will be those that are smart, entrepreneurial and prepared; those that aren't may be left behind.'


Mr Martin warned there would be a tremendous amount of competition in which volume conveyancers and large chains could potentially carve out large sections of the market.


'But this will not mean smaller firms are excluded - so long as they are commercial and plan ahead, they have nothing to fear,' he added.


See Editorial