So by the end of Thursday night, depending on the level of Liberal Democrat and Conservative support in the general election, we may end up with a government that aims to abolish Home Information Packs (HIPs).

As a leading HIP provider in Bristol you might not expect us to say this, but…

Killing off the HIP might be the kindest move in the circumstances.

They were born with a limp that they’ve never had the chance to shake off…

Why HIPs have never fulfilled their promise

Let’s start from the beginning.

The initial idea behind HIPs was to increase the speed and transparency of homebuying. Sellers would be deterred from speculatively marketing a property; buyers would benefit from fewer delays, less uncertainty and a reduced threat of gazumping.

All this was to be achieved by requiring the seller to provide an upfront version of what a buyer needs to find out later in the process.

Added in to that was the new Europe-wide requirement for an EPC — an energy performance certificate to advise buyers of running costs and potential energy efficiency improvements.

So where were HIPs struck with a limp?

The HIP that was originally conceived is different to the HIP that came into law.

Initially, the HIP was due to contain a Home Condition Report (HCR) — a basic version of a survey, detailing the condition of the property in everyday English.

Instead, today’s HIP is a watered down version that has never contained meaningful structural information.

For various reasons, the HCR was abandoned—and the result is a HIP that buyers simply don’t ask to see.

Leaving aside the complexities of the particular arguments over HCRs, when they decided to take structural survey out of HIP, they may as well have consigned the project to the scrap heap. A survey is more important than local authority searches to buyers.

This would have been a key driver for buyers asking to see the Home Information Pack.

Wait, don’t buyers benefit from seeing the HIP?

According to estate agents, buyers don’t even ask to see them. It’s simple to see why: the all-important part is missing. Without an independent assessment of the condition of the property in plain English, HIPs are irrelevant in buyers eyes.

Do sellers benefit from producing a HIP?

Again, no: they don’t assist in the marketing of a property. They contain reports that will be useful once both parties enter the conveyancing process, but there’s no way they can be used to promote a particular house or flat for sale.

Then what are HIPs good for?

Red tape. They’re packaging for an EPC, and a collection of searches that are legally necessary but by no means a marketing essential.

So you still need an EPC?

Yes. Killing off HIPs will just take the HIP back to its component parts. To market your home you will still need to get an EPC because that’s part of different legislation at a European level.

What will happen if they do kill off HIPS?

The cost of searches will be passed back again to buyers.

The cost of EPCs will still be a factor for sellers.

The housing market will go through a lurch as sellers wait for the requirement to be lifted.

Estate agents will be left with holes in their coffers after investing in the HIP process for 3 years.

And how about about all the VAT the Government will be missing out on when HIPs are no more?

Let me know your thoughts in the comments below.

Footnote: What should sellers do?

Even if there is a change of government by the end of this week, it may be some weeks before HIPs are phased out. If you need to market a property this month, Horizon can provide a standard HIP for £299, or you can take advantage of our unique offer of a £99 HIP in Bristol.