THE introduction of Home Information Packs (HIPs) will have little impact on the number of property sales that fall through, a campaign group claimed.
Splinta (Sellers Pack Law Is Not The Answer) said despite costing up to £1,000, the packs would have had no effect in the majority of cases where a transaction collapsed.
The packs are being introduced in June next year in a bid to reduce the £1m a day the Government estimates is wasted as a result of sales falling through at a late stage.
They will contain title deeds, local authority searches and a home condition report.
But the group, which analysed 1,870 property transactions set up during February, said in only a minority of cases could a sale have been saved by one of the packs.
Out of the cases looked at in February, 68% had proceeded to the exchange of contracts by May, while 18.8% of transactions had fallen through and 14.2% of properties had either been withdrawn from sale or were still on the market.
Of those transactions that did fall through, the main reasons were a change in circumstances for the buyer or the seller or broken chains, accounting for more than two thirds of sales that collapsed.