Home Information Packs (HIPs) are to be axed under the new coalition government.

Home Information Packs (HIPs) are to be axed under the new government, Housing Minister Grant Shapps and Community Secretary Eric Pickles have announced, in an effort to encourage people to put their houses on the market.

HIPs were introduced in August 2007, initially for houses with four or more bedrooms, and gradually introduced into the rest of the market to cover all house sizes.

The packs are a legal requirement, to be compiled by homeowners before they sell their house, with the aim of providing buyers with all the information they needed up-front, such as land registry information and local searches.

The move by the new coalition government means that homeowners will still have the option of providing a HIP with their property, however it will no longer be a legal obligation. This will take effect from 21 May.

Eric Pickles, Community Secretary, said: “The expensive and unnecessary HIP has increased the cost and hassle of selling homes and is stifling a fragile housing market. That’s why I am taking emergency action to suspend the HIP, bringing down the cost of selling a home and removing unnecessary regulation from the home buying process.

“This swift and decisive action will send a strong message to the fragile housing market and prevent uncertainty for both home sellers and buyers. HIPs are history. This action will encourage sellers back into the market, and help the market as a whole and the economy recover.”

According to the government, over ten years this measure will create a £870 million saving for consumers, which can be spent in other areas of the economy.

Sellers will still need to provide an Energy Performance Certificate (EPC), however will not need to have received this before they market their home. Grant Shapps, Housing Minister, said: “We’re also showing our commitment to a greener housing market by keeping EPCs and making them more relevant in helping buyers make informed decisions on the energy costs of their new home.”

However, not everyone has welcomed the news. When the proposal to scrap HIPs was initially announced, London law firm Wedlake Bell warned that many people would risk losing their job if the abolition came into effect.

Jeremy Raj, Head of Wedlake Bell’s Residential Property Team, said on 12 May: “I have already been contacted by Domestic Energy Assessors [DEAs] who left their old jobs and invested their own money into the HIPs industry either to pay for their own training or set up their own business. Search providers, estate agents and many others have also invested heavily in the HIP industry and many have not yet recouped their set-up costs. It is a real shame that they were persuaded to risk so much to provide a service that almost nobody in the property industry wanted.

“Many DEAs are self-employed so if they do lose their livelihood without any kind of compensation then that would be a severe blow.”

According to the Association of Home Information Pack Providers there are between 3,000 and 10,000 people whose livelihoods are – either directly or indirectly – dependent on HIPs.