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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.

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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I am in the conveyancing department of a large firm of solicitors and can see endless problems with HIPS. The Pack will do nothing to speed the process up when sellers and buyers all have their own agendas for completion dates, starting new schools or jobs and holidays, all of which affect their ability to proceed. Sellers also have to realise that they should instruct their solicitor at the same time as producing a Pack, otherwise further delays will ensue because money laundering procedures still have to be progressed. The other bone of contention is when the buyer will not instruct their broker to go ahead with their mortgage application until they are certain they want the property - this happens regularly and again will not be helped by a HIPS pack! The idea of speeding up the process is a good one but until we get rid of all the old hang-ups about buying and selling, delays will still occur.
Wendy Freeman, Chelmsford, Essex, England
I'm disturbed to find that the cheif executive of the NAEA doesn't have a basic grasp of how HIP's works.
He contends that in order for a property to be multi-listed, it will nneed multiple HIP's, incorrect, 1 HIP will cover the multi-listing. Assuming 1 agent provides the HIP, the other agents will require their own HIP provider to approve that HIP at a cost of about £30 + vat per approval.
Other than the EPC, all the other required elements of the HIP are already required and have to be paid for, during the sales process, they will simply be provided upfront by the vendor.
Statistics show that 33% of all house sales fail to exchange. However, of those agreed with HIP's in place, only 8% failed to exchange! Surely buyers and sellers alike would prefer to have a better than 90% chance of their sale proceeding, rather than a 1:3 chance of it ending up a waste of time and money for all concerned
Andrew Hill, Southampton,
The only people that will find HIP's negative are the ones that have something to hide when selling their house.
As a first time buyer I wasted so much money trying to buy my first home. I got the ball rolling and started paying for searches when the sellers were not ready to sell. This should never happen, and for a first time buyer I did not have money to waste.
With the HIP the property will not be on the market unless all the searches are in the process of being attained. The seller finally must do somthing to sell there house. If they have nothing to hide they will also pay for a HCR. It should be the resposibility of the seller to present their house for sale.
When you go for dinner you are not expected to cook the food, when you take a taxi you dont do the driving, why when you buy a house would you pay for any thing other than the deed. The house should be ready to buy when put up for sale. HIP will make sure there is no confusion when a property goes up for sale.
Marti Keise, London, England
HIPS are a waste of time and money. Example energy efficiency statements appear to make sweeping generalist comments with recommendations that make little monetary sense.
The most obvious consequence of them, is that they will deter opportunist sellers from enterin the marketplace, which will significantly restrict the supply of housing stock for sale, and constrict the property market. I forsee many of the estate agents that have emerged over recent boom years struggling to survive over the coming months, principally because of this legislation.
Finally, as a prospective buyer I see no benefit whatsoever, in the packs, once again teh Government seeks to impose its will on buyers who are capable of choosing what investigations they wish to undertake before purchasing.
Steven Nock, Lichfield, England
HIPS are a waste of time and money. Example energy efficiency statements appear to make sweeping generalist comments with recommendations that make little monetary sense.
The most obvious consequence of them, is that they will deter opportunist sellers from enterin the marketplace, which will significantly restrict the supply of housing stock for sale, and constrict the property market. I forsee many of the estate agents that have emmerged over recent boom years struggling to survive over the coming months, principally because of this legislation.
Finally, as a prospective buyer I see no benefit whatsoever, in the packs, once again teh Government seeks to impose its will on buyers who are capable of choosing what investigations they wish to undertake before purchasing.
Steven Nock, Lichfield, England
What utter nonsense and misrepresentation of what actual home buying problems are at real buyers level.
What most people need is an end to gazumping and the assurance that once an offer has been accepted that you have now got a house, without someone coming along with more money and snatching the dream away.
All that is required to speed things up is the offer, acceptance and money down being made a contract. Up front.
Yes, you can have conditions, or clauses/subjects, like subject to financing or satisfactory survey...But put dates on those clauses and the sale then sales through.
IThis process works in the U.S. & Canada., where house sales take little time to complete.
Government interference just b...... things up and creates more paperwork, cost, agencies and complications....Butt out Central Government and speak to actual buyers,sellers and realtors.
Patricia van der Veer, Wallasey, near Liverpool, U.K.
HIPS are ill conceived and the regulations very poorly drafted. This government is forcing this policy through with unseemly haste with little care for the impact it will have on the property market. Worse the HIPS propaganda published by the government does not fully explain the costs, delays and procedures to the consumer. If it did then there would be a public outcry.
Caroline Hume, Hitchin, UK
As usual the government has made a right mess of something which could have been so good. Energy certificates I think are a good idea as it allows the buyer to see the potential environmental cost of a house, I am not sure how far it will go however towards reducing energy use. Listed buildings for example are limited to what can be done and many original features such as stained glass in windows are often seen as a selling point and personally the secondary glazing options that I have seen in properties look awful. The main issue I feel that the government has messed up on are things like local searches which have a short expirey period. It would seem to be a complete waste of money on the part of the seller to have these done if the buyer then has to repeat the process. The same goes for building surveys, if a house has been on the market for six months would you trust it to still be accurate? EPC's good, rest bad.
Kevin Alexander, London,
HIPS will do absolutely noting whatsoever to help either the buying or selling process. The government is driving them because the core component of the HIP is the Energy Certificate which they need to database for every dwelling in the UK. The government have found a way of doing it free and gratis using the HIP as the vehicle. If you replace the words home information pack with tax by the back door you will see why they will pursue this bad piece of legislation relentlessly. This is no greenery but robbery!
Mark Savill, novahomes, Chard Novahomes, UK
I think that this is another in a long line of 'consultatiions' that pay lip service to the industry involved, and are progressed regardless of opposition.
Lorraine Jones, Bristol,
One issue that the press does not seem to have cottoned on to is the fact that the Governmnet has refused to publish the Report on the outcome of the trial which was conduted on HIPS. The only conclusion one can come to is that it proves HIPS does not speed up the process of buying and selling which is what the whole idea behind HIPS is. I would urge the press to bring this to thre fore
Simon Harris, Hertford, England
As with the nonsensical identity card proposals the Conservative opposition should issue a firm commitment to repeal the HIP legislation upon their re-election.
M.Laurance, Biddenden, Kent