Home Information Packs Suspended

Homeowners selling their properties will no longer be required to produce a home information pack Hip), after the government yesterday announced they will be scrapped.

Hips have been dogged by criticism. Estate agents have long complained they add red tape to the selling process, while sellers have grumbled about the £200-£400 price tag attached to the packs.

Yesterday communities secretary, Eric Pickles, laid an order before parliament suspending Hips, pending primary legislation for a permanent abolition.

"The expensive and unnecessary home information pack has increased the cost and hassle of selling homes and is stifling a fragile housing market he said. "That is why I am taking emergency action to suspend the Hip, bringing down the cost of selling a home and removing unnecessary regulation from the home buying process.

"This action will encourage sellers back into the market, and help the market as a whole and the economy recover."

The Law Society has enthusiastically welcomed the news saying that "the Government's decision to abolish HIPs can only improve the consumer experience in home buying and selling."

Reacting to the news that the coalition government has suspended the use of Home Information Packs (HIPs) with immediate effect, the Law Society said reform of the home buying process is essential to meet the real needs of the home buying market.

"Relentless uncertainty in the housing market, coupled with the excessive costs to the consumer, has made the abandonment of Home Information Packs [HIPs] the only sensible option", said Law Society President, Robert Heslett

The Law Society President explained: "The Society has regularly argued that HIPs have led to increased costs and a host of cross-selling initiatives that were not in the consumer's interests. The advent of HIPs encouraged estate agents and HIP providers to vie with eachother to gain the initial access to the consumer so that they could be referred, for a fee, to other professionals and service providers which distorted the market. These fees were not transparent to the consumer. Having written to Grant Shapps MP, Minister of State for Housing, on May 14th, to ask for HIPs to be abolished, I am extremely pleased with this outcome."

Concern about the additional cost to sellers and lack of benefit to consumers has prompted the Law Society to propose a complete and comprehensive set of documents, prepared by a solicitor, who has the benefit of specialist legal training and professional responsibility. The Society is recommending that the information be provided in a standard format to bring proper value to consumers and improvements in the process whilst at the same time reducing cost. The Society's approach is designed to support consumers and improve the process by providing practical and innovative support to provide a better experience for all those involved in the home buying process.

Robert Heslett added, "The professional integrity and legal skills which solicitors have traditionally brought to the housing market are probably more important now than they have ever been. The marked increase in property fraud, including registration fraud and mortgage fraud, means that the role of the solicitors as the gatekeeper in the process assumes a greater importance .This role falls to solicitors as the most highly regulated professionals in the process. Solicitors can help consumers understand the residential conveyancing process, the role of the solicitor and others in the buying and selling market and to make informed choices."