You’d be forgiven for feeling confused over Home Information Packs (HIPs).
The year 2007 has seen promises made and broken, conflicts in the property industry and bewilderment among house buyers and sellers. So here’s the latest HIPs lowdown.
Who needs a HIP?
The government has announced that Home Information Packs (HIPS) will be required on all properties being sold in England and Wales from 14 December 2007. Communities and Local Government (CLG), the department responsible for the packs, says that this is the final stage of the rollout of HIPs.
However, if you market your property after 14 December, you will have until 1 June 2008 to produce a HIP. The CLG says this is to ‘allow for full flexibility and ensure continued smooth implementation of HIPs’.
Why do we need Home Information Packs?
The government says HIPs will make buying and selling property a quicker process and will also reduce the number of ‘fall throughs’ - for example, about one-in-four sales break down at some point, largely because of buyers pulling out after they find something in the survey that they are not happy about.
Fast facts
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From 14 December 2007, all properties being sold in England and Wales will need a Home Information Pack
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A HIP must contain:
- Index (list of documents within the pack)
- Evidence of title
- Standard searches
- An Energy Performance Certificate (see below for more on EPCs)
- Sale statement
- Any additional information for leasehold/commonhold sales.
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Home Condition Reports (HCRs) are optional (see below for more on HCRs).
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HIPs cost roughly £300 to £350 (double if a HCR is included).
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Time taken to compile a HIP: seven to ten days.
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Scotland is to get its own version of HIPs in 2008.
History of HIPs
Since they were a glint in the eyes of ministers, Home Information Packs (HIPs) have gone through the mill.
Originally, the government intended them to come into effect from 1 June 2007, but delayed them for various reasons, one being that there was an ‘insufficient number’ of qualified inspectors to produce Energy Performance Certificates and Home Condition Reports.
After much apparent indecision and U-turns, Hips were finally implemented on 1 August 2007 – and only for homes with four or more bedrooms.
They were extended to homes with three bedrooms from 10 September 2007.
HIPs have proved highly controversial. Critics say the packs are an unnecessary piece of bureaucracy and an added expense. They argue that the packs will hinder the buying and selling process, and thus causing a housing market slump and an increase in inflation.
Supporters of HIPs say the packs will help the buying and selling process by increasing transparency by providing all the relevant information about a property upfront, thus helping to prevent sales falling through. Plus, they say the packs will save costs for first-time buyers, since the cost of a HIP will be the responsibility of the seller.
Energy Performance Certificates
An Energy Performance Certificate (EPC) is a compulsory component of a HIP. It indicates how energy efficient a property is. A trained energy assessor will compile the report, giving each home a rating from A (most energy efficient) to G (least energy efficient). The assessor will also give recommendations on how to improve the building’s efficiency.
Home Condition Reports
A Home Condition Report (HCR) was originally a compulsory part of a HIP. Now it is optional. It is designed to inform the buyer of the property’s condition, and must be carried out by approved home inspectors. Existing chartered surveyors do not automatically become home inspectors - they too need to undergo training and sit exams.
If you are buying a brand-new home
Buyers of brand-new homes will feel little effect. The HIP will include all of the information currently found in the warranty schemes that exist on almost all new-build properties. It will also include the Council of Mortgage Lenders pre-completion check, when an independent surveyor conducts an inspection of a new home before agreeing to release the mortgage advance to a buyer.
Where to buy a HIP
A number of high street and online organizations, including estate agents, already offer Home Information Packs to consumers. Contact the Association of Home Information Pack Providers (AHIPP) for a list of members on 0870 950 7739 or visit the website.
For more information about Home Information Packs, visit the
government’s information site.
This page was last updated on 23 November 2007 by Sarah Speight