The government is struggling with an increasingly unconvincing product, as implementation time
for HIPs draws near, argues Kevin Martin



With fewer than four months to go to the compulsory implementation of home information packs (HIPs), the emergence of a consultation document on 25 January highlighted what some might describe as the total disarray at the Department for Communities and Local Government (DCLG). The government is struggling with an unconvincing, last-ditch attempt to implement HIPs.



The legislation of 2004 has been watered down by the proposed transitional arrangements as the government finally attempts to deal with the realities of the marketplace - issues that the Law Society had repeatedly pointed out to ministers. There are no new answers in these proposals, just more indecision.



The emphasis on the importance of the energy performance certificate (EPC) - which must be the first document in the pack - is a feeble attempt to cover up the deficiencies in HIPs by hiding behind the climate change agenda.



There are no changes to the required documents on 1 June, which will remain as the index, sale statement and title documents. However, new transitional provisions have been announced for leasehold documents and local and drainage searches. Although these are required documents, if they are unavailable when the property is marketed, evidence must be placed in the HIP that they have been applied for and will be forthcoming within 28 days, except in exceptional circumstances. If it takes longer than 28 days, HIP providers will have to demonstrate they have made all reasonable efforts and enquiries to obtain them.



Acknowledging that there may well be problems, the DCLG will be consulting about how it can enforce such a bizarre regime. Problems in obtaining unregistered documents are not mentioned.



As the Law Society predicted, the dry run highlighted the cracks in the search market and the government's response is to allow personal searches for a transitional period until April 2008, provided that they are insured. The extension of the deadline to 31 March 2008 for properties already on sale on 1 June to provide a HIP will cause even more confusion and destroy the primary objective of HIPs, which was to create a level playing field in the housing market.



Sellers will now be even more confused about the contents of their HIPs and unsure as to what they need to provide on the first day of marketing to avoid a fine. When the timetable was launched, it was inevitable that the government would run out of time to be able to fulfil its promise of a meaningful dry run with full evaluation. Yet still we are being rushed headlong towards the 1 June implementation of an ill-understood concept, which is still changing and may change further if this new outbreak of consultation is genuine.



While pointing out the difficulties and dangers of HIPs, particularly in light of these most recent announcements, the Law Society is working hard to make sure that solicitors have the tools that they need on 1 June to meet their clients' needs and cement their position in the market. The Society urges solicitors to engage with HIPs, because then you will offer the best possible support to home-buyers.



Chancery Lane will be sending additional information about the Law Society HIP solution to every conveyancing solicitor. It is determined that its members should be prepared - even if the government is not. A marketing kit is also under development for solicitors to use. The closing date for the government's latest consultation is 21 February 2007. The Law Society's HIPS task force will be responding and it encourages practitioners to make their views known.



Kevin Martin is chairman of the Law Society's home information packs task force