The House of Lords has finally endorsed Home Information Packs (HIPs) paving the way for home-movers to benefit from more detailed information on the properties they buy and sell.

This should save millions of pounds in failed transactions, said the government and consumer pressure groups.

Critics have said the packs will cost up to £1000 and will quickly go out of date, but Which?, formally called the Consumers Association, said today that at a cost of £650, HIPs will actually save people money as they will include searches and a draft contract – whereas solicitors’ fees alone cost on average £600.

The Housing Bill comes into force immediately, but HIPs won't be compulsory until 2007 and pilot schemes are due to start in 2006.

The Commons overturned a last minute attempt by peers to make the packs voluntary when it was argued by housing minister Keith Hill that sales chains could be disrupted if one seller did not use them in a voluntary system.

Which? said it would be closely monitoring the pilot scheme, which will undergo a compulsory trial in the first half of 2006, to ensure that the interests of people, rather than industry, are central to the development of the scheme.

Emma Harrison of Which?, said, “This is great news for home-movers and will help give peace of mind to millions as they undertake one of the most expensive and stressful events of their lives. Each year millions of pounds are unnecessarily lost through failed transactions resulting from hidden problems. HIPs will go a long way to providing vital information on a property, helping to avoid costly last minute hitches."

The National Association of Estate Agents said it was disappointed that the government had not taken on board their 'Day One' marketing ideas but said all was not lost.

"The good news is at least the government has agreed to a proper trial of this major reform and has placed on record that it will listen to industry and act fully on any problems, which arise out of the pilot. This will ensure that all the practical details of HIPS, which the government will be announcing next year, are to be subject to rigorous scrutiny," said NAEA chief executive, Peter Bolton King.