Home Information Packs (HIP's) - New Rules for House Sellers in England and Wales

What does the law require?
From 1 June 2007 all home owners in England and Wales will need to arrange for a Home Information Pack to be prepared before putting their homes up for sale. This is a legal requirement for residential properties on the market for sale in England and Wales. Any person or agent who markets a property must make available a HIP to people who are interested in buying a property. It will be an offence not to make a HIP available if you are marketing a property.
The regulations regarding the production and content of HIP’s came into effect on 29th March 2007.

What is contained in a Home Information Pack?
All HIP’s MUST have all of the following:-

• An index (i.e. a list of the contents of the Pack)
• A sale statement (summarising terms of sale)
• Evidence of title
• Standard searches (i.e. local authority enquiries and a drainage and water search)
• An Energy Performance Certificate

Where relevant, the following MUST also be included:

• Commonhold information (including a copy of the commonhold community statement)
• Leasehold information (including a copy of the lease, information on service charges and insurance)
• A New Homes Warranty
• A report on a home that is not physically complete

Additionally, authorised documents  MAY be included, such as:

• Guarantees and warranties
• Other searches
• A Home Condition Report*

An “authorised document” is a document that sellers can use to top up their HIP’s voluntarily to include additional material where they judge that to be of interest to prospective buyers. There are specific rules relating to what constitutes an authorised document.
*Originally the regulations governing HIP’s made it a compulsory requirement to include
a home condition report in a HIP, however this created a lot of discontent amongst professionals and the public for various reasons including grounds of cost. Hence the Government agreed to relax the regulations so as to make a home condition report an authorised document, therefore it is optional. At the time of writing this overview the regulations have now been amended to this effect.

 
For clarification, a home condition report is an indication of the condition of the property. It is prepared by a licensed home inspector. Licensed home inspectors are people who have undergone training to the equivalent level of a GNVQ qualification concerning home inspections and are registered under one of the government’s approved licensing schemes.
A home condition report, produced by a licensed home inspector, is not, and should not be taken as being, a building or a structural survey.
There is no requirement for a vendor to include a building or structural survey in a HIP.
A building survey or full structural survey is typically undertaken by a fully qualified chartered building surveyor. Chartered building surveyors have to undertake a 3 year degree in building surveying or other relevant degree, for example in estates management, followed by up to two full years of professional training before being deemed as “competent” for the purposes of independently carrying out a full structural survey.

How do I get a Home Information Pack (HIP)?
There are a number of organisations trained to produce HIP’s which can be sourced via the internet. Many estate agents, solicitors and chartered surveyors also offer this service. Be sure to check that whoever you use to assemble your pack, they have the necessary credentials and qualification to do so.

If you are considering opting to include a home condition report ensure the home inspector is licensed.

From  29th March 2007, availablehouse.com has joined forces with one of the UK’s leading approved HIP providers. Due to the volume of traffic using our service we have been able to negotiate some of the keenest prices available for Home Information Packs.

If you would like a no obligation quotation for a HIP, simply click here.

How much will a HIP cost ?
There is no fixed price scale for the preparation of HIP’s. As with all companies offering professional property services, prices vary. Many companies give cost estimates for HIP’s, which typically fall within the range of £300-£600 for a HIP without a home condition report. And typically £500 - £1000 for a HIP which includes a home condition. Many companies quote these ranges of estimates based on an “average” or “standard” house.
We would advise anyone to shop around and seek fixed quotations before committing to purchasing a HIP. Also ensure that the quotation states what will be in the pack.

From  29th March 2007, availablehouse.com has joined forces with one of the UK’s leading approved HIP providers.

Can Availablehouse.com provide me with a HIP?
Yes we can.
We have joined forces with one of the UK’s largest HIP providers who will provide HIP’s directly to our clients.
Whether or not you advertise with www.availablehouse.com, you are welcome to use our HIP service.
Simply click here for an online HIP quotation

Date: 29th March 2007
Disclaimer: The information given above in respect of HIP’s is given in good faith and is based on information published by various British Government Departments.
For further and up to date information please visit the Governments HIP website: http://www.homeinformationpacks.gov.uk