Home Information Packs
What is a Home Information Pack (HIP)?
The Home Information Pack (also known as the HIP) is compulsory for most homes on the market in England and Wales. Important changes were made to HIPs on 6 April 2009. You can now get a HIP for a property as soon as it comes on to the market.
Why do you need a HIP?
A HIP is a set of documents that provides the buyer with key information on the property and must be provided by the seller or the seller's agent. It is a legal requirement to have a HIP and you can't market your property without one.
The HIP lets buyers see important information about the property at the start of the process, free of charge. This means there is less chance of buyers becoming aware of any surprises at the end of the process. The HIP can help reduce delays and extra expense to the buyer and seller.
What does a HIP contain?
The HIP is made up of required (compulsory) and authorised (optional) items.
There shouldn't be any marketing or advertising material in the pack, so make sure it contains official information only.
Click the image below to see an example.
Compulsory documents that need to be included in a HIP:
Freehold properties
- Home Information Pack Index
- The new Property Information Questionnaire (PIQ) (as of 6 April 2009)
- Energy Performance Certificate (EPC) or Predicted Energy Assessment (PEA)
- Sustainability information (required for newly built homes)
- Sale statement
- Evidence of title
- Standard searches (local authority and drainage and water)
Leasehold properties
- All the compulsory documents above
- A copy of the lease
Optional documents
Other documents can be included within your HIP, but these are optional. If they are included, it could help to speed up the sale and ensure that the process goes more smoothly. These include:
- Home Condition Report
- Legal summary
- Home use/contents form
- Other documents like specialist searches (for example, the seller may choose to include a mining search in a mining area)
Buyers
As of 6 April 2009, the HIP must be available on the first day a property is marketed for sale. If you are buying a property, just ask whoever is advertising it for sale for a copy of the Home Information Pack. This is usually an estate agent, but could be another business or individual.
Sellers
As of 6 April 2009, the 'responsible person' (in most cases, the estate agent) must not market your property unless the HIP is available. You'll need to make arrangements to have a HIP compiled (including paying for it) along with other preparations for selling your home. However, if there's a delay in getting certain documents, like the local searches, these can be added after your house is put on the market.
Who compiles the HIP?
You can compile it yourself or you can hire an estate agent, solicitor or HIP provider to do it for you. Always make sure that your HIP provider is signed up to a code of practice, like the HIP Code.
Who pays for the HIP?
The seller is responsible for the cost of a HIP. The cost can vary so make sure you shop around. Some providers may offer HIPs that you can pay for at a later date but you should always check the terms and conditions of your contract.
Energy Performance Certificates
What is an Energy Performance Certificate (EPC)?
The Energy Performance Certificate illustrates a chart that is similar to the charts now provided with domestic appliances such as refrigerators and washing machines.
The purpose of the certificate is to record how energy-efficient a property is. The certificate will provide a rating of the property from A to G, where A is very efficient and G is very inefficient.
Two ratings are shown. The energy-efficiency rating is a measure of a home's overall efficiency. The higher the rating, the more energy-efficient the home is, and the lower the fuel bills are likely to be. The environmental impact rating is a measure of a home's impact on the environment in terms of carbon dioxide (C02) emissions - the higher the rating, the less impact it has on the environment.
Each rating is based on the performance of the building itself and its services (such as heating and lighting), rather than the domestic appliances within it. This is known as an asset rating. The certificate also lists the potential rating of the building if all the cost-effective measures were installed.
The ratings will vary according to the age, location, size and condition of the building. The potential rating on the certificate will take these factors into account, and the suggested measures will be tailored so that they are realistic for the particular building.
New Regulations
After 6th April 2009, a Home Information Pack must be in the possession of the person responsible for marketing your home (usually an estate agent) before marketing can commence.
This bit is important because under new regulations, from October 1st 2008, you - the homeowner - are responsible for the Energy Performance Certificate. So you need to check your estate agent doesn't trip-up and potentially land you both with a £200 fine, per instance!
An EPC is valid for 3 years - You can market your home immediately once you have commissioned a Home Information Pack with a valid EPC.