It was only a few days ago that Home Information Packs, or HIPs, hit the national headlines again accompanied by a fair amount of controversy from different parties. HIPs were intended to provide information that a buyer would need so they would be much better informed before even viewing the property, and would help them identify potential problems. They were also proclaimed as an effective way of speeding up the process of conveyancing.

This scheme has been talked about for several years, but the government have just announced that while every vendor will have to provide a HIP from June next year, the home condition report element will be optional to begin with but may yet become compulsory at a later date.

HIPs will still include local, water and environmental searches, energy performance certificates, planning documentation and proof of title or ownership, all of which will be needed during the conveyancing process. However, without a home condition report, the purchaser will have no alternative source of information on the physical condition of the house, so will still have to rely on the usual survey.

The turnaround was a result of pressure started by many interested bodies such as the Council of Mortgage Lenders and the Law Society which was widely reported in the national media. The case was also taken up by high profile public figures who were concerned at the added cost and worried that HIPs would put the brakes on the housing market.

In addition, whilst the home condition report was generally welcomed by all parties, the government has decided that there will be insufficient numbers of trained home inspectors to produce reports, so this important part of the scheme has now been postponed .

We have previously expressed some concern whether HIPs will really achieve what they were designed to do. Now the home condition report is no longer mandatory, it calls into question their overall value. HIPs will however contain some information that will be helpful in conveyancing, but they will do little to speed up the process in many cases.

Delays in conveyancing are often as a result of the lengthy time taken for finance to be arranged, and HIPs will do nothing to change this. Those providing such finance are still likely to insist on their own valuation, which the purchaser has to pay for, so there will be no significant cost saving either.

Most house purchases involve a chain of properties, and the whole chain only proceeds at the pace of the slowest link. Unless the mortgage companies speed up their procedures, and a system is introduced to overcome the problems associated with property chains, the introduction of HIPs will not necessarily speed up house purchases.

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