Home information packs: The low-down

The idea of HIPS - or sellers' packs, as they are sometimes referred to - is to make the house buying process more transparent so a buyer is armed with the full facts about a property before they commit to a purchase. This, the government feels, will cut down on sales falling through: at the moment, without the packs, one in three sales do fall through, costing the consumer £1m a day, according to the office of the Deputy Prime Minister.

'We think it will make a huge difference to both buyers and sellers,' promises Yvette Cooper, Housing Minister. 'It will save money and make for a smoother process.' She adds that she thinks HIPS will best benefit first time buyers, for they have the least experience of the home buying process. In an interview with The Observer newspaper, she spoke of her experience as a first time buyer, paying for a survey that revealed £10,000 of building work that needed to be done. 'If you've got that information up front - as will happen with the introduction with HIPS - you will know straight away whether you can afford £10,000.'

Not everyone agrees. There has been fierce debate in the run up to the implementation of HIPs as to whether they will solve the problems that the government says they will. By and large, estate agents are broadly against them; David Cameron, has also stated he will scrap HIPs if the Conservatives come into power. Location, Location, Location presenters Kirstie Allsopp and Phil Spencer have also backed a campaign to get them scrapped.

In an open letter to SPLINTA (sellers packs law is not the answer), the presenters state: 'Gazumping, gazundering, chains and the fact that sales fall through because people simply change their minds will, sadly, all still be facts of property life after HIPs come into force. We would like to see cost-effective changes made that would really improve the home buying process, but the Home Information Pack is just not it.' They add: 'The only people who will benefit from these packs are the companies that will make a fortune out of compiling them - and the government, who will get hundreds of millions of pounds each year in extra VAT revenue.' The Jury's still out.