Despite some obvious confusion around the HIPs scheme, it really is a straightforward process that should save you money. The HIPs pack consists of documentation that has always been required, only now it is conveniently produced in a pack and is paid for by the seller rather than the buyer. This means that you only need to commission the required documentation once, when you market your property. The only new additional requirement is the Energy Performance Certificate.
It became law on 14th December 2007 for those marketing most kinds of residential property to provide a Home Improvement Pack (HIP). *
HIP Contents
By law the pack includes an Energy Performance Certificate, containing advice on how to cut carbon emissions and fuel bills. Also required are documents such as a sale statement, searches and evidence of title. You can, if you wish add other relevant information to the pack as long as it is included in the Governments optional items list. We are happy to discuss such documentation with you.
HIP Background
Home Information Packs are intended to improve the home buying and selling experience for consumers and to reduce the carbon emissions from homes. The current home buying and selling process is slow, expensive and uncertain.
Its worth noting that almost 1 in 4 house buyers who had completed a transaction experienced at least one failed transaction during the course of their most recent house buying and selling experience with the average wasted cost being in excess of £1000.**
You do not need a Home Information Pack for:
- Properties where there is no marketing (e.g. sale to member of your family)
- 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.
- Properties already on the market when the duty to have a Pack arises
- New homes built under Part L of the Building Regulations 2006 (these will be brought in by a separate commencement order in due course)
* see exceptions.
** HIPs Baseline research, conducted in summer 2006 by the Building Research Establishment and Ipsos MORI
