Home Information Packs
It's been on and off more times than Pete Doherty and Kate Moss, but at last it's official - from 1st August many of us selling our homes will need to provide buyers with a Home Information Pack (HIP).
The idea behind the pack is to make the home buying process smoother. At the moment, about one in four property transactions break down before contracts are exchanged, usually because new information comes to light after a formal offer has been made. So now the seller will be legally obliged to compile all the documents required for the sale into one pack - documents such as the deeds, the local search, and the new energy performance certificate. By providing all the essential information about a property upfront the HIP should reduce the stress of both buying and selling.
However HIPs have faced criticism from estate agents, surveyors and even property TV celebs (step forward Kirsty Alsopp) since they were first proposed by the government, with the result that they are now being introduced in stages. From 1st August, you must provide a HIP if you are selling a home with four or more bedrooms. If your home is smaller, you will have to provide the HIP for any sale after January 2008.
A HIP contains five basic components:
How do I get a pack?
If you are selling, you can hire an estate agent, solicitor or specialist HIP provider to compile the pack for you.
Alternatively you can do it yourself. This will involve contacting a solicitor or conveyancer to arrange for the searches and legal documents, approaching your local authority or a personal search company for the searches, and the Land Registry for evidence of title. You will also need to find a Domestic Energy Assessor to do your Energy Performance Certificate. If you want to include a home survey in the pack too, you'll need to find a home surveyor too.
How much will it cost?
It's likely that estate agents, solicitors or specialist companies will charge between £300 - £500 for a pack. The seller will pay, but the buyer could be charged costs for postage or copying.
Sellers can also refuse to provide a copy in certain circumstances - if for example, they believe a buyer can't afford the property or they believe the buyer is not interested in buying it.
Will HIPS make home buying easier?
It's too early to tell. However, research by the Energy Saving Trust suggests that getting an Energy Performance Certificate could be a good thing: it seems buyers are willing to pay up to £10,000 more for an environmentally friendly house - and that 70% of people consider energy efficiency to be important when buying a home.
What should a buyer expect?
Potential buyers have a right to a copy of the HIP, which should be provided within 14 days of request. Sellers are entitled to make a reasonable charge to cover copying and postage costs and may refuse to provide a copy in certain limited cases. But if you are buying and believe that you are being denied a copy of the pack unlawfully, you should contact local authority trading standards officers.
Where can I find advice?
The government has set up a HIPS website to provide information on HIPS to both buyers and sellers. The Energy Saving Trust has information on the Energy Performance Certificate. To find HIP suppliers in your area contact the Association of Home Information Pack Providers.
Before you proceed
Check your sale requires a HIP. The pack only applies to homes in England and Wales, and even then not all sales require a HIP - if you are selling a home with no marketing - to a member of your family, for example - or if you are selling a house with a commercial unit such as a shop. If you do need to provide a HIP, get quotes from at least three suppliers before commissioning.
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