HIP Facilities Group and its subsidiary HIP Payment Services have announced they will withdraw from the market and will not accept any new business from 31 August.
HIP Payment Services offered deferred payment options for home information packs (HIPs), but a lack of housing transactions has made it impossible for the business to continue.
Jeff Smith, chief executive of HIP Facilities Group, says: “Having weathered the shambolic launch and roll out of HIPs, I am very disappointed that we have had to take this decision.
“However, there eventually comes a time when even a market leader must acknowledge that the transaction volumes in the HIP market no longer offer an independent lender such as HIP Payment Services a viable platform on which to build a profitable business.”
The firm will continue to service current loans for HIP purchase until each case is concluded.
The current situation in the housing market, which show little prospect of letting up in the near future, meant the firm could not justify further investment to support trading.
Smith also offers a bleak outlook for the HIPs market due to the current political and economic situation.
“I believe that the HIP market as a whole will continue to suffer unnecessarily until the Government has the courage to implement a clear and positive stance for HIPs, and the Tories stop treating this entire industry as a political football,” he says, “frankly everyone connected with the production and use of Home Information Packs deserves better.
“I would like to take this opportunity to thank our HIP provider partners for their support and wish them every success for the future.”
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From 6 April 2019