Home Information Packs (HIPs) are a mandatory requirement for all properties.

The Government has agreed to allow properties to go on the market without the HIP, as long as one has been commissioned.

From January 1st 2008, a HIP including the EPC and title-must be offered from the first day a property is marketed and local searches must have been commissioned.

What is a HIP? (Home Information Pack)
A Home Information Pack is a collection of documents providing important information about a property being offered for sale. This will include information such as the energy efficiency of the property. Information held by the Local Authority that may concern the property such as any planning or development issues and details concerning the legal ownership of the property.

WHY ARE HIPS BEING INTRODUCED?
Hips are being introduced as Government research suggests that £350 million is wasted by consumers every year as a result of aborted housing transactions. By requiring the seller to compile important property documents upfront, both buyers and sellers will be more informed. This should mean that fewer transactions fail due to problems coming to light after an offer has been accepted reducing abortive sales and speeding up the process. Additionally, HIPS meet government's requirement to provide energy performance ratings on all domestic properties.

HOW WILL HIPS BENEFIT ME?
SELLERS - As a seller it will mean that when you agree a sale you can be much more confident that the sale will progress smoothly with less chance of the buyer dropping out as you will have provided them with important information upfront allowing them to make an informed decision and reduce the chance of any nasty surprises coming to light.

BUYERS - As a buyer it will mean you will be able to make an informed decision about a property before putting in an offer as you will have access to essential information at the start of the viewing process.

In Essence, HIPS offer great peace of mind and a quicker, smoother process for all involved.

FREQUENTLY ASKED QUESTIONS

Will I be able to sell my property with out a HIP?
In general all residential properties designed for domestic use, including new build homes, require one unless they are unsafe or due to be demolished. Buy to let properties are also only exempt if they are being sold without full vacant posession. A number of other exemptions apply and our mortgage broker will advise you if you do not require a HIP.

How long does a HIP last?
Until your property is sold. If you take your property off the market and decide to re-market it within a year of creating the HIP the same pack may be used: unless you have updated any of the contents yourself. There is no obligation to update your HIP as long as your property remains on the market, however some documents can be no more than three months old when marketing begins.

WHAT IS IN A HIP?

Energy Performance Certificate (EPC)
This document gives information on the energy efficiency level of the property. A licensed Home Inspector will need to visit the property to take various readings at mutually convenient time.

The EPC will be rated on a scale of A-G. The most energy efficient home will have an A-rating. The EPC will also advise as to the what impact the home has on the environment. Better rated homes will have lower Carbon Dioxide emissions.

The Government believes the average property in the UK will be in bands D-E. Recommendations will also be included in the EPC about how to make the home energy efficient.

Sale Statement
This item gives brief details of the terms of sale.

Evidence of Title
This consists of a Land Registry document which details the legal ownership of a property.

Local Searches
These will include the Local Authority search detailing any statutory provisions affecting the property (e.g. planning permission or new road schemes) also water and drainage systems.

Leasehold or Common Hold details
These are additional details which are only required if applicable to the property.

The Government also has plans to extend the HIP to include Home Condition Reports, other searches and certain other legal information in the future. However no formal dates have been announced.

How much does it cost?
HIPS vary in price depending on the size of the property but typically they can range from £300 to £600.

The vendor is responsible for providing and paying for the HIP, while buyers pay nothing.