HIPs ARE HERE – ALL YOU NEED TO KNOW!

The first phase of the introduction of Home Information Packs (HIPs) commenced on 1st August 2007, starting with 4 bedroom properties and larger. The Government plans to introduce other properties over the following months, although no firm timetable is in place at this stage.

Once HIPs are fully introduced the vast majority of home owners will need to obtain one before they can market their property. This is a significant change to the home buying and selling process, but provided you understand the key features of a HIP, what they are intended to achieve and ensure that you obtain yours from a reputable source, they are not something that should alarm you and hopefully over time, they will actually improve the overall process!

What is a Home Information Pack?

A HIP contains a collection of important documents that are required when houses are bought and sold. These include various legal searches, land registry documents and an energy performance certificate (EPC), which is intended to inform sellers and potential buyers how ‘green’ a house is. These are the compulsory elements for all properties; leasehold properties require additional information and there are various other documents and reports that can be included if appropriate (see “What is in a HIP” section).

Why are they being introduced?

The original idea behind Home Information Packs is to make the process of buying or selling your house easier and quicker, by providing key documents when the property is first put on the market. Currently this information is not usually available until after an offer has been made and accepted. The goal is to deliver a more transparent and efficient process, thereby reducing the number of failed transactions, which currently costs consumers over £350m per year.

In addition, the EPC is a key part of the drive to make everyone more energy conscious and efficient. A new property built in 2007 is 40% more energy efficient than a house built only 5 years ago; at the same time, the government is determined to improve the efficiency of the existing housing stock, and that over time, the EPC and energy rating of a property will become a key element in the home buying process.

The EPC is the only new document not currently required for conveyancing, and it is fully explained in the EPC / HCR section.