Government performs HIPs U-turn

The introduction of controversial Home Information Packs has been delayed until August 1.

The Government U-turn on the widely unpopular scheme was announced by Communities and Local Government Secretary Ruth Kelly in a statement to the Commons.

To jeers of derision from the opposition benches, Ms Kelly told MPs she was "phasing in" the new arrangements two months behind schedule.

Initially HIPs, including energy performance certificates, will only be required for four bedroom properties and larger.

"We will extend to smaller properties as rapidly as possible - as sufficient energy assessors become ready to work."

Ms Kelly admitted that only about 520 assessors would have been fully accredited to do the job by June 1, when at least 2,000 were needed.

The announcement comes after a legal challenge to HIPs from the Royal Institution of Chartered Surveyors and fierce Tory opposition.

Ms Kelly said the U-turn offered a "pragmatic way forward" and would give "clarity to everyone" about the way ahead.

Michael Gove, for the Tories, said the move was a "desperate last minute retreat" and the Government had behaved "incompetently".

The row over Hips, which the Government claimed would speed up the property buying process and reduce the risk of failed transactions, has rumbled on at Westminster for the last ten years.

Property professionals have argued that making it illegal to put a home on the market without first compiling a pack costing around £500 risked exacerbating a shortage of property for sale, particularly in London and the South East.

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