Liz Ramsden, a Residential Property Lawyer at Knights, warns the proposals risk repeating the issues that came from the scrapped Home Information Pack (HIP) system from 2007, and urges the government to think carefully to avoid making these mistakes again.
Liz says:
“The proposals announced by the Government today are well-intentioned and come at a time when the housing market desperately needs reform, but against the backdrop of a housing crisis, there’s a real risk they’re being rushed.
“These new plans sound strikingly similar to the old Home Information Pack system, which ultimately proved too costly and complex for sellers. Back then, many sellers paid hundreds of pounds to compile legal searches and documents upfront, only for the information to go out of date before a sale was agreed, forcing them to pay again.
“The new proposals risk repeating those mistakes. And the idea of binding contracts is particularly concerning. What would happen if someone were to lose their job or find issues following the surveys and checks on the property? The system needs reform, but it has to protect consumers as much as it promotes efficiency.
“To avoid another failed rollout, the Government must learn from the last attempt and ensure information packs are digital, low-cost, and reusable, with clear validity periods to stop data expiring. It also needs to make legal advice mandatory before any contract becomes binding. Without those safeguards, the reforms could once again burden sellers and confuse buyers rather than speeding up the process.”