HOME Information Packs could spell disaster for the housing market, according to the National Associaton of Estate Agents.

The NAEA claims the Government’s new Housing Bill has failed to accommodate any of the real concerns estate agents have over the proposed introduction of Home Information Packs (HIPs).

The Office of the Deputy Prime Minster published the new Housing Bill which, says the NAEA, has ignored all its issues and concerns. In particular, the Bill has completely failed to address the following:

* HIPs will damage, not improve the housing market. The production of HIPs by the sellers will typically take two weeks to prepare, cost around £600, and must be completed before a property is marketed.

* Many prospective sellers seeking to test the market will not do so. Many actual transactions are initiated by such activity.

* Quick deals between sellers and buyers will not be allowed. Research by Friends Provident indicated that housing transactions could fall by as much as 30 per cent as a result.

* The Home Condition Report (the survey of the property to be carried out by the seller and included in the packs) will have limited use and value.

As the Home Condition survey is initiated by the seller, the buyer must take the information on trust. Those carrying out the survey will not be fully qualified surveyors but so-called Home Inspectors.

Extra cost to the home buying process is £500m, based on the fact that 80 per cent of current market transactions do not have a formal survey associated with them.

There is a major concern over Professional Indemnity Insurance. At present, the insurance industry is unwilling to cover the Home Inspectors. How will home-owners gain recompense if the Home Inspector’s work is faulty?

Julie Westby, president of the NAEA said: “The proposed introduction of HIPs is a dangerous move by the Government.

“It has been poorly researched, and imposes extra costs and bureaucracy in and already complex market. It could have serious repercussions on housing transactions, and consequently on house prices.’’