What is a Home Information Pack (HIP)?

 

From 1 August 2007, HIPs are being introduced across England and Wales, although inititally only for properties of 4 bedrooms or more. When a property is marketed the home seller will need to provide prospective buyers with a number of documents about their home. Previously these documents would have been compiled throughout the sale, so it’s hoped that by providing clear information about properties up front, the process of buying and selling will be made smoother.

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Who needs a HIP?

 

You do not need a Home Information Pack for:

• Properties where there is no marketing (e.g. sale to member of your family)
• Non residential properties
• Seasonal and holiday accommodation
• Mixed sales (e.g. shop with flat)
• Right to buy and similar sales
• Sales of portfolios of properties
• Properties not being sold with completely vacant possession
• Unsafe properties and properties to be demolished.

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What about new-build properties?

 

Sellers of newly built homes will have to provide a HIP.

 

Where a home is marketed “off-plan” before it is physically complete, it will need a HIP (subject to the HIPs phased implementation) but will not have a full EPC. Instead the HIP will contain a Predicted Energy Assessment. This will look similar to the graphs from a full EPC and will be produced from the design plans for the building rather a physical inspection. There is no specified form for the predicted energy assessment but there is a template which can be used to create one.

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When will 3/2/1 bedroom properties require a HIP?

 

The phased implementation of HIPs is to ensure there are enough Domestic Energy Assessors (DEAs) to produce EPCs, which form a compulsory part of the pack. We anticipate needing 2000 accredited DEAs to incorporate 3 bedroom properties and 3000 to cover the whole market. These numbers however, are subject to there being an appropriate regional spread and the data collected from the implementation form 1 August onwards.

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What if the property was on the market before the 1 August

 

Properties that are genuinely on the market before the commencement date (i.e. 1 August for sales of homes with four or more bedrooms) will not need a Pack. This exemption will apply for as long as marketing continues but the Government may appoint a date which all properties on the market will be subject to the HIP duties, regardless of when they were first marketed.

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What is in a HIP?

 

The following compulsory documents must be included in a Home Information Pack:
• Home Information Pack Index
• Energy Performance Certificate
• Sale Statement
• Standard Searches
• Evidence of Title
• Additional information for leasehold and commonhold sales, where appropriate

You can also include other documents such as Home Condition Report, an environmental or flood risk search and other information that would be of interest to a potential buyer as defined in the regulations.

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Are HIPs required across the UK?

 

No – only in England and Wales

What is an Energy Performance Certificate?

 

An EPC tells potential buyers how energy efficient a home is. Homes will be rated on a scale from A to G, with the most efficient homes (with the lowest fuel bills) in band A.

The certificate also tells you about the effect the home has on the environment (again rated on a scale from A to G). Homes with better ratings have less impact through carbon dioxide (CO2) emissions.

 

The average property in the UK will be in bands D or E for both ratings. EPCs also include recommendations on ways to improve a home’s energy efficiency – so you can save money and help the environment.

If you’re selling a property that’s being built, you’ll need to provide a predicted assessment of the property’s energy efficiency. However, a full EPC should be provided when the home is completed.
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Why should a seller commission environmental or other authorised searches?

 

ASellers may want to carry out authorised searches if it’s thought they might improve the saleability of the property. Any extra information brings greater transparency to the sale process, an the authority of the searches can help dispel any doubts a potential buyer might have.

 

For example, if a buyer is worried about contamination or flooding, a search will show them exactly how much risk there is – there may be historic contamination of the site or adjoining land that’s been remediated, or a property may technically be on a flood plan, but there may be no historic record of any flooding.
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Do electrical certificates need to be included in the pack?

 

Electrical certificates (past or present) are not a required component of the Pack, but can be included if the seller has them.

What is the shelf life of a HIP?

 

If all regulations are adhered to when a HIP is compiled, none of the components have a prescribed shelf life – as long as the property remains on the market. The contents may, however, be reviewed at any time.

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Will HIPs be subject to VAT?

 

HIPs will be subject to VAT.

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As a solicitor can I co-brand the HIPs?

 

The pack can include the company logo, just email this to HIPs@jordans.co.uk.

What is the HIP code?

 

The HIP code is designed to protect the interests of consumers. The code which was sponsored by AHIPP is administered by the Property Code Compliance Board www.propertycodes.org.uk which is an independent regulator with a majority of consumer interest board members. Consumer interest are covered by insurance and consumer redress, which is provided by the Chartered Institute of Arbitrators is free to access.

How will the HIP be paid for?

 

Coming soon.

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