The Government's controversial Home Information Packs (HIPs) came under fire today in a report from the House of Lords which said that criticism of the Government’s plans to make HIPs compulsory was “striking” and “widespread”.

Under the Government’s proposals, it will be compulsory for sellers England and Wales to provide a HIP from 1 June. The report is estimated to cost from £300 to £500 and will contain title deeds, local searches and an energy performance certificate (EPC).

Ministers hoped that HIPs would make the home-buying process more efficient and cut the number of transactions which collapse late in the day.

However the House of Lords said that the Government had failed to convince the housing market that HIPs were sensible or worthwhile.

Expert View

Hips have already won hearts and minds and will make us all greener, or so the Government says

Anne Ashworth

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Hips will make us greener, or so the Government says

• Hips have already won hearts and minds and will make us all greener, or so the Government says

BACKGROUND

• Home Information Packs come under fire

• Q&A: home information packs

• Will HIPs pack a real punch?

• Home Information Packs branded as 'ridiculous'

BACKGROUND

• Home Information Packs come under fire

• Q&A: home information packs

• Will HIPs pack a real punch?

• Home Information Packs branded as 'ridiculous'

Estate agents, surveyors and lawyers said that the pack would lead to delays and put sellers off from entering the market place.

Peter Bolton King, Chief Executive at the National Association of Estate Agents (NAEA), said: “There are a number of fundamental flaws with the legislation which have led us to believe that it will not improve the home buying and selling process in the way the Government suggests, and that in fact it will have a serious and negative affect on the UK housing market.”

Opposition MPs are now likely to table a motion in Parliament calling for the policy in its present form to be scrapped.

The Conservative Party seized on the report and accused Ministers of using HIPs to “play politics with the housing market.” Michael Gove, Shadow Housing Minister, said: “The House of Lords report underlines how badly the Government has handled the introduction of HIPs. The Government clearly needs to think again to get this policy right. As it stands the hassled homebuyer gets no benefit from HIPs and environmental regulation is faulty.”

However the Department for Communities and Local Government hit back at the Lords report criticising the committee for only hearing evidence from a narrow range of groups, such as RICS and the National Association of Estate Agents, which are opposed to the reform.

Housing minister Yvette Cooper said: “It’s unfortunate the Committee did not take evidence from environmental groups nor from industry groups who support HIPs. The government is pursuing the policy of HIPs because it will cut carbon emissions and improve the flow of timely information to consumers. Our approach on Energy Performance Certificates (EPCs) has been widely welcomed by green groups. It is shocking that the Conservatives want to block Energy Certificates given the impact these could have in helping cut carbon emissions."

Ministers originally planned for the packs to contain a Home Condition Report (HCR), a type of building survey, which would protect sellers against transactions falling through at the last minute. However the HCR was dropped as a mandatory part of the packs last year.

The House of Lords report concluded that the Government has, “not been able to convince the principal stakeholders in the housing market that their proposals as they now stand are sensible or worthwhile, or are likely to be effective for their declared purposes”.

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