Home information packs: Are you prepared?

From 6 April 2009, Home information packs (HIPS) must be in place, not just ordered, before houses can be put up for sale.

There is still confusion about who needs them and what they are so we try to shed some light on this confusing situation in this article.

What are home improvement packs?

Home improvement packs (HIPS) are designed to provide up front information about the ownership, results of local authority searches and the energy efficiency of the property to prospective buyers.

By providing this information, the Government hopes to reduce the high percentage of house sales that fall through between acceptance of an offer and exchange.

In its drive towards energy conservation, the Government has stipulated that each HIP must contain an energy performance certificate that is obtained from a qualified energy assessor.

Remember from 6 April it will be illegal to market a house  in England or Wales without a HIP in place.

Where do you obtain the packs?

You can arrange a HIP through estate agents, solicitors or specialist HIP companies.

You can compile the HIP yourself, though the energy efficiency report must be undertaken by a qualified assessor.

Home information packs cost from around £200 to prepare, with costs for leasehold flats, which require detailed legal scrutiny of more documents, higher.

Penalties for marketing without a HIP

You can be fined if you are discovered marketing a house without a HIP.

Do you have to provide a HIP?

The short answer is yes you should provide a copy of the HIP to all potential buyers. You do however have a few circumstances under which you can refuse to provide one. These include:

• if you believe the person cannot afford the property e.g. if they don’t at least have a mortgage ‘in principle’
• if you believe their interest in your property is not genuine.

Delaying the HIP preparation

Whilst previously you could market a property without a HIP as long as it had been ordered, from 6 April 2009 you must have the HIP before you place the house on the market.

What does a HIP look like?

The requirement is to have a HIP in place which contains all the mandatory items and the documents all comply with the age rules as defined by the government. Beyond this there is no standard format to present the HIP in.

What information must be in a HIP?

The following is a summary of the documents that must be included within a HIP:

• The Home Information Pack Index
• Property Information Questionnaire (PIQ)
• Energy Performance Certificate / Predicted Energy Assessment
• Sustainability information for newly built homes
• Sale statement
• Evidence of Title
• Standard searches

In addition for the sale of a leashold property a copy of the lease is also required.