Housing minister Yvette Cooper has announced that the controversial Home Condition Report (HCR) will no longer be a compulsory component of home information packs (HIPs).

The move came after sustained pressure from mortgage companies, surveyors and estate agents who claim the industry would never have been ready for the planned implementation next June, and that HIPs could endanger the stability of the UK housing market.

The elimination of a mandatory HCR means that the cost of a HIPs will be dramatically reduced and could now cost in the region of £100, as opposed to the governments initial estimate of £650.

Cooper said: "Further testing is needed to ensure Home Condition Reports deliver the assumed benefits for consumers and that the operating systems that support them work smoothly.

"Design work on the dry run has made it clear this cannot be completed in time for the results to be taken into account by 1 June.

"The remaining aspects of Home Condition Reports [excluding energy performance certificates] will not be made mandatory from June."