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A new study released today claims that vendors who buy their HIPs directly from an agent could pay nearly double the amount than if bought through a specialist provider.

The report compiled by consumer group, Which? has warned that vendors would be paying up to £300 more for Packs that were commissioned by an agent.

Looking at the cost of HIPs provided by a range of estate agents compared with independent online providers for three-bedroom properties and two-bedroom flats finding a ‘staggering’ difference between the two providers.

As of yet, Countrywide offered the most expensive HIP for a three-bedroom property charging around £459, while a HIP from online provider Fridays Property Lawyers was only £189.

Furthermore, Spicehaart were named as the most expensive HIP provider for a two-bedroom flat at £516, whilst only £292 was charged by Hip Save.

James Daley, editor of Which? Money said:‘ Don't be fooled into thinking that you have to buy it from your estate agent. Our research shows that the most expensive high street agents charge over twice as much as the cheapest online HIP providers - so you could save hundreds of pounds by shopping around for the best deal.’

The NAEA’s chief executive Peter Bolton-King has also agreed with the research stating that the discrepancies were ‘symptomatic of these dysfunctional packs.’

However, much like the similar case back in April when a Channel 4 investigation found agents were ‘ripping vendors off’, it seems the research doesn’t show the full picture.

Paul Smith, chief executive of Spicerhaart, said: ‘The majority of the lower cost or free HIP providers add on fees elsewhere, for example, making it a condition of purchase that you use their conveyancing services for which they charge a higher price.’

Source: Ageants - 19th Aug 2009