I'm speculating that all of us involved in the property professions have been wondering this week about the implications of the supermarkets entry into the estate agency business. Yes, they have tried this before, back in the eighties, and it didn't take off. So why are they trying again?.

Clinton famously had 'It's the Economy, Stupid' posted on his wall during the 1992 presidential campaign.

I've modified it slightly to 'It's the Internet, Stupid'.

That, in a nutshell, is the big difference.

People are now very familiar with the concept of going online to search for their next house and it is a logical progression for them to consider selling a house through an online portal.

Many vendors are already using the profusion of online sites to try a DIY sale.

Bring this together with a brand name like Tesco and proposed fees of around 1% including a free home information pack, then the business opportunity is clear.

Tesco have built a reputation in the areas of home insurance and financial services, with over one million customers.

If Tesco get the required customer service levels right then there is no doubt that this business model would work.

So how are the traditional local estate agency and conveyancing solicitors to compete?

Well, big corporates have tried to muscle in on estate agency over the years with varying degrees of success.

Certainly a considerable part of market share now rests in the hands of the larger companies.

However, the independents are still thriving and this comes down to local knowledge, local contacts and personal service.

Here at Hips Direct, our ethos from the start has been to put an IT infrastructure in place that would support local businesses and the existing relationships that exist between solicitors and estate agents and surveyors.

We support nomination of local home inspectors and solicitors and will provide the HIP online so that agents can link directly to it from the website, with a back link to independent estate agents websites if somebody has come to us directly.