Selling or buying a house is a traumatic process for most of us at the best of times, but when the sale falls through at the last hurdle it only makes things even more stressful.

According to the Government most house sales fail following an adverse survey that shows up issues not apparent at the outset. By the time the purchaser becomes aware, much time and expense has been wasted. How much better if the relevant information was available before the property was even viewed!

Well, there may be a glimmer of light on the horizon to that may improve things for house purchasers. Home Information Packs have been talked about for several years, but from August 2007 it is proposed to make it compulsory for all domestic property sellers to provide a Home Information Pack (HIP). This will include a home condition report, an electrical report and local searches and will be available when the house is put on the market. These documents will, to a certain extent, identify potential problems with the property so purchasers will be much better informed before even viewing the property.

While this is a move in the right direction, and Home Condition Reports are generally welcomed, concerns about the proposed HIP package have been expressed by the Law Society and the Council for Licenced Conveyancers. It is proposed that HIPs will not just contain home reports and searches, but a profusion of other lengthy legal documents that are not needed until the conveyancing process is well under way. The effect of all this extra paperwork will be to increase the cost of the HIP to more than £1000, a cost that has to be borne by the vendor.

HIPs are unlikely to speed up the process of conveyancing. Most of the delays are due to the lengthy time taken by mortgage companies to approve loans, and when there are several properties in the chain. Mortgage companies will have to speed up their procedures, and a system introduced to overcome property chains being held up by the slowest link, because HIPs will have no effect on either of these.

Concerns have also been expressed by high profile public figures such as the leader of the Conservative Party, David Cameron, and Kirstie Allsopp of Channel 4’s Relocation, Relocation programme. Their concerns are that in the proposed form, HIPs will put the brakes on the property market generally, and this will particularly affect first time buyers.

Hopefully, the powers that be will take heed of the opinions of the professionals and review the final proposals. Keeping the constructive aspects of home condition reports and searches and dropping any unnecessary documentation will keep the cost realistic, reduce the number of failed transactions and not adversely affect the property market.

We will keep you updated on developments, but if you need any further advice on HIPs or conveyancing contact Debbie Matthews or Stephen Frith at Motley & Hope. Telephone Debbie or Stephen on 01767 600600 or e-mail debbiematthews@motleyandhope.co.uk or stephenfrith@motleyandhope.co.uk.