A loophole that let companies run scams to help homeowners avoid having a home information pack (Hip) has been closed by new regulations announced by the government this week.

Up until June 1^st next year homes may be marketed without a Hip, potentially allowing a pre-listing of homes that might be for sale after the regulatory ‘H’ day. However, in a statement from the government, homes on the market before the June 1^st next year, will now have to have a pack in place by the following November if it remains unsold.

"This will stop any companies making money from prospective house buyers by listing their houses as on the market prior to June 2007, in the belief that they would never need a Hip," said Mike Ockenden, director general of the Association of Home Information Pack Providers (AHIPP).

"Any home without a Hip after June next year will be at a distinct disadvantage against properties that do have a Hip, containing a valuable home condition report, and vendors run the risk of being unable to sell as quickly or even at all," he said.

"As a buyer which house would you favour? One which has a free condition report to one that does not," added Mr Ockenden.

The regulations and details announced by the Government today means that Hips are on course for implementation on June 1^st 2007. With less than a year to go, AHIPP believes that it is now time to inform the public about the consumer benefits of Hips as the majority of people do not yet know what they entail.

Self-interested opposition groups who clearly do not have the consumer’s interest in mind have put about much misinformation, points out AHIPP. But as Which? has said, the introduction of Hips will greatly benefit the consumer and its early research suggests that the public supports Hips.

Consumer benefits of home information packs 

• Hips will speed the time from offer to exchange and cause fewer house sales to fall through and cut down on gazumping.
• The home condition report part of the Hip will identify any faults in a house at the start of the transaction so appropriate action can be taken and nasty shocks avoided later down the line.
• First time buyers will be in an advantageous position because they will get for free the home condition report, the searches and other information they would normally have had to pay for.
• The energy efficiency report will outline the energy costs involved in running a property.
• The buyer will be able to trust the home condition report although it will be commissioned and paid for by the seller because the home inspector, who will carry out the inspections, has a duty of care to the seller, buyer and lender.
• Home inspectors are being newly trained for the job and will be stringently regulated and backed by professional indemnity insurance.
• Hips will cut down the number of properties that fail to sell because the whole sales/purchase process is being made more transparent. This will save aborted costs and cut down on the stress of moving home