Home Information Packs (HIPs) were introduced in 2007 with the aim of speeding up property transactions and giving buyers clearer information at an earlier stage of the sales process. Just three years later, they were abolished after failing to deliver meaningful improvements in completion times or fall-through rates.
Rather than streamlining sales, HIPs were widely criticised for adding cost and complexity. Many estate agents argued the packs discouraged sellers from listing homes, increased bureaucracy and created an additional compliance burden, while evidence of tangible market benefits remained limited.
When the Conservatives came to power in 2010, HIPs became an early casualty of a broader push to reduce regulation in the housing market. The policy was scrapped as part of efforts to stimulate activity and promote homeownership.
However, despite their political demise, HIPs still offer lessons for today’s sellers looking to avoid delays and reduce the risk of transactions collapsing – particularly as the industry once again shifts toward providing more information upfront.
“Sellers are telling us they’re ready for change, but they’re not prepared to pay for another failed experiment,” said Kevin Shaw, national sales managing director at LRG. “The lesson from Home Information Packs [HIPs] is that any new system must ensure the information is used and not duplicated.”
Shaw highlights that the HIPs concept was to provide buyers with comprehensive information upfront to speed up transactions; however, the execution fell short, with buyers’ solicitors often repeating the searches for liability reasons, meaning sellers paid twice and saved no time.
The government recently consulted on reforms that aim to address these issues, with a roadmap expected this year, and there is an encouraging sign that this time could be different. Around half – 51% – of buyers say having more information upfront would increase their chances of making an offer, with 22% saying it would make them more likely to do so, according to a recent study carried out by LRG.
“This is the key difference,” added Shaw. “If buyers are genuinely more likely to make offers based on this information – and, according to our research, they are – then sellers will see a real return on their investment. It’s not just about providing information; it’s about providing information that influences decisions.
“As we outlined in our formal response to the government consultation, we believe that if upfront information is implemented correctly, it could naturally reduce fall-throughs without the need for more interventionist measures like binding contracts, and buyers armed with comprehensive information are more likely to commit with confidence.”
LRG’s research also found strong awareness amongst buyers and sellers of the government’s reform proposals, with 65% of respondents reporting they had heard about the planned changes to the homebuying process. Support for digital property records is similarly high, with half of respondents backing the idea of a permanent online record containing sales history, surveys, certificates and details of any building work.
For the reforms to succeed, implementation will be vital, according to Shaw. Sellers have shown they are willing to invest in a better system, but only if that system learns from the mistakes of the past.
“If these reforms are executed well, the entire chain benefits,” added Shaw. “Faster transactions, fewer fall-throughs and sellers who feel their investment was worthwhile. But get it wrong, and we’re back to square one.”
Download the full LRG Winter Sales Report here.
