It seems those in the property sales industry who warned for many months that the market wasn't ready for the introduction of the Home Condition Reports (HCRs), within HIPs have won the day.

The government has announced pretty much at the eleventh hour, as far as the property industry is concerned - HIPs become compulsory on June 1, 2007 in England and Wales - that the requirement to have an HRC within a HIP is being dropped.

Most estimates were that a HIP containing an HCR - its most expensive item - would cost around £1,000, an amount to be paid for by sellers.

Whether that figure will be greatly reduced now that an HCR is no longer mandatory remains to be seen. But certainly many believe the cost will come down by around 40%. Home inspectors will still need to visit properties, however, to carry out energy efficiency reports, so the saving is unlikely to be much greater.

One conclusive voice that seems to have led to the Government's decision at this late stage to change its policy is the view of the Council of Mortgage Lenders - see article 'HIPs Hype? Or will they change the way property is bought and sold for good?'