SELLING a home will cost hundreds of pounds more from December 14, when the Government’s controversial home information packs (Hips) are extended to cover all residential property. Proponents say that the scheme, which already applies to homes with three or more bedrooms, will speed sales by giving buyers easy access to essential information. It also transfers a number of existing costs from purchaser to vendor, cutting the expense for first-time buyers.

However, the roll-out has been condemned by the Royal Institution of Chartered Surveyors (Rics) and the National Association of Estate Agents. Both argue that the extra cost to sellers of about £300 to £350 will reduce the number of properties coming on to the market, restricting, rather than helping, new purchasers. Jeremy Leaf, of Rics, says: “Although they are not the only factor, Hips are continuing to have a detrimental impact on the market.”

This is contradicted by recent research for the Government, which indicates that the packs have had “no discernible impact on transactions, mortgages or prices”. Despite initial misgivings, Which? is also upbeat. Vicky Taylor, of the consumer group, says: “Hips are here to stay and we are getting behind them. It is all information that buyers need and makes the process transparent and easier for first-time buyers.”

A Hip contains certain mandatory documents: an energy performance certificate, which rates a home’s green credentials on a scale from A to G; “standard searches”, such as drainage and water and local authority inquiries, and evidence of title. The requirement for a home condition report, a form of survey, was dropped. Ms Taylor says that this is a mistake because many first-time buyers continue to buy “blind” to save money.

Paul Broadhead, of the Association of Home Information Pack Providers (Ahipp), says that estate agents, solicitors and other providers can compile a Hip within five to ten days for £300 to £350. Alternatively, the seller can compile his or her own pack, dealing direct with a search agent and “home inspector” for a saving of about £50, although this may take a day or two longer. He says that most sellers use their estate agent’s service for convenience and defer payment until completion. Some providers offer a no-sale, no-fee deal, although this applies if you cannot make a sale, not if you take your property off the market.

A seller must commission a Hip before putting a home on the market, when prospective buyers can request a copy for the price of postage and photocopying. But the packs are not required where no marketing takes place – if you sell to a friend, for instance. The rules are outlined at www.homeinformationpacks.gov.uk .

All estate agents belong to government-approved schemes that give consumers redress for Hip-related complaints. Ahipp members, meanwhile, have their own Hip code.

Sellers who do not compile a Hip face a repeatable penalty of £200.

CASE STUDY

HOPING FOR A QUICK SALE MIKE TRETHEWEY paid his estate agent £299 to compile his Hip before putting his six-bedroom Queen Anne townhouse in Henley-on-Thames, Oxfordshire, on the market.

The 62-year-old retired sales director says that the scheme is a “good idea” in principle, as it should streamline the selling process and help first-time buyers, adding: “But it has been mismanaged by the Government. The home condition report should have been an important component.”

One prospective buyer has already requested a copy of the Hip and Mr Trethewey is confident that he will sell soon. He and his wife, Carole, are downsizing to a modern two-bedroom property, also in Henley. Under the current rules the seller is not obliged to provide a Hip. “It would have helped us a bit,” says Mr Trethewey, “but the house is only four years old, so the paperwork is straightforward.”

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