Hips should improve transparency

The government has announced its intention to pursue its controversial house-sellers packs. What will this mean for the way we buy and sell houses?

What are they?

The government wants to introduce compulsory "home information packs" (HIPs) in England and Wales.

These would require people selling their houses to collect information about their properties ahead of the sale.

Similar schemes already operate in Denmark and New South Wales in Australia.

Why do we need them?

The aim is to make the house buying and selling process more transparent and consumer friendly.

People will have better information at their finger-tips when they view properties.

This should cut out timewasters, and save money for buyers.

Will it prevent gazumping?

No, the packs will not ban gazumping.

However, the packs should lessen the chance of gazumping taking place because it should cut the time taken between agreement and completion of the sale.

But the law will not be changed to make an initial offer for a house legally binding, as it is in Scotland.

What will the packs contain?

This has not yet been fully decided.

However, sellers or estate agents acting for vendors will be required to assemble lots of legal documents.

They could include a copy of the lease on leasehold properties, and evidence of ownership such as title deeds.

Sellers will also be obliged to have a "home condition" report, a type of structural survey.

New requirements such as an energy efficiency assessment may also be included.

What about cost?

The cost is to be borne by the seller, instead of the buyer as at present.

The government estimates the pack will cost between �500 and �600 to assemble, slightly higher in London.

Some fear the cost will be too expensive for people on low incomes.

However, others believe the cost will be driven down by market forces, and estate agents will offer the sellers' pack as part of the selling deal.

So why are they so controversial?

Supporters say the packs will empower both buyers and sellers - but not all agree.

The government has some vocal opposition - mainly from lawyers and estate agents who are sceptical of the proposals.

Surveyors, however, who will do well out of the plans, are more welcoming.