U-turn on HIPs

Ministers had been under pressure from some opposition MPs and estate agents to scrap the packs, which, at up to £1,000, would put the burden of paying for surveys on home sellers rather than home buyers.

The government said it has decided to go ahead with the implementation of its controversial home information pack scheme from next June, but without mandatory inspections.

Yvette Cooper, housing minister, said the compulsory packs, known as Hips, would go ahead next June, but they would no longer contain “home condition reports”  similar to traditional surveys. Instead, they will contain only energy performance certificates, which have to be introduced under European law, and local planning searches.

Housing Minister Yvette Cooper said that after 'dry run' work there was evidence that the scheme could not be introduced smoothly.

'As a result, we have concluded there would be significant risks and potential disadvantages to consumers from a mandatory 'big bang' introduction of full home condition reports (HCRs)on June 1, 2007,' she said in a statement.

Mike Ockenden, director-general of the Association of Home Information Pack Providers, predicted the new packs were still likely to cost more than £200 each. “Someone still needs to go around to the house and do the work. Much of the cost is getting someone to get in a car and go to the property.”

Sellers could still voluntarily include a home condition report in their Hip, said Ms Cooper.

The government appeared to have buckled under pressure after 130 MPs last week signed a motion against the packs amid fears they could affect house prices.

Which?, the consumer group that had backed Hips, said the policy had been designed to protect consumers when making their biggest purchasing decision. After the “half-baked compromise” by a “straw” government, the packs would now do no such thing.

Michael Gove, shadow housing minister, who has fought the policy, described the move as a “shambles” and a “Whitehall farce”. The government should abandon the scheme and consult afresh, he said.

Ms Cooper admitted that plans to train 7,500 “home inspectors” were behind schedule. Only 232 had completed their training by the end of June. Further testing would be carried out on whether home condition reports would work as part of Hips. The government did not want to jeopardise the roll-out of energy performance certificates by any amendments or delays to the rest of the scheme, she said.

Not all estate agents welcomed the news. Paul Smith, chief executive of agents Spicerhaart, said making the condition report voluntary was “a complete cop-out”. Many companies had spent millions of pounds gearing up for the policy.