Home Information Pack's
Your questions answered
Q: What is a Home Information Pack (HIP)?
A: A HIP is a collection of information about a property prepared by the owners for prospective buyers. The five compulsory documents are, the HIP index, which explains what is in the pack, the energy performance certificate (EPC), which rates the property's energy efficiency and gives it an environmental impact rating, the sale statement, which explains who owns what, a standard searches document, which should cover all the relevant searches carried out by the local authority, including water, drainage and nearby planning proposals, and evidence of title documents, which prove that the seller owns the property.
If the property is owned on a leasehold or commonhold basis, copies of the lease and other relevant documents should also be included.
Q: Is a homebuyer’s report included?
A: There is no homebuyer's report or survey in the HIP. Buyers are still advised to get a survey done themselves, however, and any mortgage company will also carry out its own valuation survey, for which the buyer will pay. Sellers can include a home condition report as an optional item, along with a legal summary, a contents form and other location-specific forms such as a risk-of-flooding or ground stability survey.
When HIPs were first unveiled it was suggested that a survey, or home condition report, would be the most important part of the pack, but heavy lobbying from organisations such as the National Association of Estate Agents forced the government to remove it.
Q: Are HIP’s required on the sale of all properties?
A: HIP’s are now required on all properties except new builds which meet the most recent building regulations, they won't fall under the HIP rules until April 6 this year.
Q: During what part of the sale does a HIP need to be produced?
A: Originally, the government said packs had to be ready before a property could be put on the market, but it has changed its mind on this twice. The law now states that if you are selling before June 1 2008 you only have to have had a pack commissioned when the house is put on the market. This means people could start looking around a property before the HIP is ready.
Q: What is the position with selling a property in Scotland?
A: Scotland plans to introduce a similar scheme this year, but it will include the property survey and is known as the single survey scheme or purchaser's information pack.
Q: How much will a HIP cost to prepare?
A: Research published by the government in November 2007 showed on average HIPs were costing between £300 and £350 to prepare. Some of the costs would have been met by the buyer under the old system; some like the cost of the EPC are new. In general the seller will pay the bill, although the costs of printing and postage for individual packs can be charged to the buyer.
Q: HIPs remain valid for how long?
A: In theory until the property sells. If the property comes off the market and goes back on again within 12 months the HIP will still be valid.
Q: Is an energy performance certificate (EPC) compulsory?
A: In the time since the packs were first unveiled a European directive has made it compulsory for all properties selling in the UK after January 2009 to hold an EPC. Rather than wait until 2009, the government has opted to include these in the HIP. The EPC is based on an energy audit. Before you sell your property an inspector will rate how efficient it is. They will look at your boiler, light bulbs, windows and loft and cavity wall insulation. Ratings go from A-G, with A-rated properties the most energy efficient.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Levels and bases of, and reliefs from, taxation are subject to change.
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