Home Information Packs (HIPs)

The Home Information Pack or HIP is a government initiative intended to simplify the house purchase process. Historically in the UK it has been the responsibility of the purchaser to commission searches on the property they wish to buy however this new piece of government legislation shifts the responsibility to the vendor.

A HIP must be prepared prior to the marketing of a property in order that any prospective buyer can have access to the information contained within. This information can help purchasers make an informed decision regarding whether or not to make an offer on the property.

The legislation was introduced in stages from 1st August 2007 to 14th December 2007 when it became necessary for all properties offered for sale to have a HIP

Summaries below give general information on HIPs as well as information for vendors and purchasers. Further information can be found on the government website www.homeinformationpacks.gov.uk

Information on HIPs

Required Documentation

All HIPs must include the following documentation, some of which must not be more than three months old at the point of marketing the property.

• Index of contents - Listing all contents contained within the HIP

• Sale statement - Detailing basic details of the property and how it is being offered for sale including: the address of the property, whether the property is freehold, leasehold or commonhold, whether the property is registered or unregistered and whether or not the property is being sold with vacant possesion.

• Energy Performance Certificate (EPC) - A report indicating the presence and efficiency of any energy-saving features installed at the property, for example cavity wall insulation.

• Evidence of title - Documentation stating that the vendor is entitled to sell the property. The exact information required will depend on the conditions of sale as outlined in the Sale Statement.

• Standard searches - Searches of the relevant Local Authority regarding planning, roads and water provision.

• A property information questionnaire - A questionnaire which details information regarding your purchase of the property, any problems you have experienced during your ownership, utility supply and council tax banding. This document is essential from 6th April 2009.

• A copy of the lease should the property be offered leasehold

• A sustainability report should the property be newly-built and previously unoccupied

Optional Documentation

Further documentation can be included in the HIP at the vendors discretion if they feel it would be useful to purchasers or speed the sale process. These could include:

• Reports on the condition of the property suggesting any maintenance or repairs necessary

• A Legal Summary to aid understanding of the HIP

• Home contents descriptions including ownership of boundaries

• Non-standard searches where appropriate. For example a mining search in areas which have seen previous mining activity

• Any other documents pertaining to the sale of the property

What are the costs involved?

The cost of preparing a HIP is the responsibility of the vendor. The overall cost is largely dependant on the cost of surveys which are set by the Local Authority and therefore vary from region to region. Search costs must be paid up front however some estate agents or solicitors may allow you to pay for the entire cost of HIP preparation on the sale of your property.

Information for Vendors

All properties will require a completed HIP prior to being available for sale. Please see the Required Documentation section above for information on the documents required. Your estate agent may be able to put you in touch with a qualified party such as solicitor who can compile a HIP for you, alternatively there are two agencies which list firms who subscribe to their codes of conduct for HIP production. These are the HIP Code and the IPPA, The Independent Pack Providers Association. It is also possible to create a HIP yourself. The most time consuming part of this process is obtaining the relevant searches from your local authority which can take around 10 days.

Information for buyers

All homes for sale must have a completed HIP and you are entitled to view a HIP at any stage of the buying process from a 1st visit onwards, it may contain information which influences your decision on whether or not to make an offer for the property in question.

Relevance to the letting market

Properties offered for let do not currently require a HIP however an EPC or Energy Performance Certificate, which is one of the documents included in a HIP, is required. An EPC grades a property between A, the best, and G, the worst, for its energy efficiency. In general an A grade property will be cheaper to heat than a lower graded property of the same size.

3.1.2.5 - v1.0