The government's long-awaited regulations prescribing the contents of home information packs (HIPs) have 'serious defects' which could leave consumers at risk, the Law Society has warned.

The regulations, which were published last week, set out those items the packs must include - such as the home condition report (HCR), searches and an energy performance certificate - as well as 'authorised' documents they may contain. No advertising or other unauthorised documents will be permitted in the packs.


The regulations close a potential loophole by making provision for a transition period for homes that are already on the market before HIPs come into force on 1 June 2007. This gives sellers five months' grace - if their homes remain unsold by 31 October, they will need to provide a HIP, or become liable for a £200 fine. Previously, it was thought that they were permanently exempted from having to produce a pack.


Another significant change is that the format of the new documents is no longer to be prescribed by the Department for Communities and Local Government, but left up to individual pack providers.


Housing minister Yvette Cooper said the government's aim was to encourage greater competition and transparency in the home-buying process and provide people with proper information at the beginning of the process.


She dismissed opponents of the new scheme as people with 'vested interests who make money out of the current system and who are opposed to reform', emphasising that HIPs were about getting a better deal for the consumer.


The government also published the certification scheme standards, establishing the requirements to be met by home inspectors who will complete the HCR. They will require indemnity insurance so that buyers, sellers and lenders can rely on the report. The scheme will also include independent redress against home inspectors when things go wrong.


However, Law Society President Kevin Martin warned that 'there are still some serious defects' with the regulations, such as the lack of a provision for information within the HIP or the HIP itself to be authenticated or confirmed by the seller. He added that the Society still has concerns about the training and regulation of home inspectors, and called for the establishment of a 'strong regulatory regime'.


'We still believe there should be a warning that reinforces to the buyer the risk of taking on substantial liabilities and commitments without the benefit of independent advice - without the warning the consumer is seriously at risk,' Mr Martin said.


Rob Hailstone, chief executive of pack providers HIPAG, welcomed the regulations. He said: 'They don't give us the answers to all the challenges, but they do give us something substantial to work with.'