The introduction of Home Information Packs - aimed at transforming home-buying and selling - has received a boost with plans announced today, showing there has been real progress following discussions between government and the industry about how the scheme could operate.

The discussions have agreed the architecture and ownership of the programme, the structure of a certification scheme, and the shape of a ‘dry run’ planned for 2006.

According to the government, HIPs will inject much needed transparency into the home-buying and selling process by bringing together key information about a property's condition, energy efficiency and ownership before homes are marketed. The 'dry run' will enable all elements of the pack to be tested.

Housing Minister, Yvette Cooper, said HIPs would bring real benefits to those buying and selling homes in England and Wales and would help re-shape the housing market.

"The programme’s development, including proposals for the Home Condition Report Registers and the ‘dry run’ in 2006 is in good shape and industry involvement with government should ensure that public confidence continues to grow in the build up to the packs’ introduction early in 2007," Ms Cooper said.

The partnership is looking at a number of options as to how the certification scheme might operate, including as a Not for Profit company predominantly owned by industry and approved by government. Once the operating criteria are agreed with the industry later this year, the company is expected to be established in shadow form.

The scheme is likely to develop and oversee the standards operating within the market for home condition reports and the accreditation of home inspectors who will prepare them. This should help consumers and lenders alike, and secure widespread support for the new scheme. It will also provide a means for sellers wishing to select their own inspector.

Draft regulations covering the legal content of the packs will be published shortly, followed by drafts later in the year covering search information, the home condition report and certification scheme and the way in which home condition report registers are to be held and accessed.

These Regulations will have been the subject of close working with key stakeholders, and it is unlikely that there will be any surprises for them when the Regulations are finally laid later this year.

The Royal Institution of Chartered Surveyors gave its support for the proposals to introduce HIPs in early 2007. HIPs will bring buyers and sellers reduced risk of transactions falling through along with the potential saving in abortive costs, the surveyors said. First time buyers in particular will benefit from these proposals. These are the key reasons RICS supports change from the current system which is a notoriously stressful experience for many people.

A pool of up to 7,000 licensed home inspectors will be needed if HIPs are to be successfully introduced in 2007. In order to achieve this, the majority of home inspectors will need to come from the ranks of experienced surveyors who currently undertake residential survey work, says RICS.