Home Information Packs

The Government has announced that from 14th December a Home Information Pack (HIP) will be required for the sale of every home in England and Wales.  This announcement concludes the phased introduction of HIPs which started on 1st August.

The announcement has come as a surprise to many as it was strongly rumoured that HIPs would not become compulsory until January/February 2008.  However it does make sense for them to be introduced at what is traditionally a quiet time for conveyancing.

HIPs consist of copies of the legal title of the property, local authority, water and drainage searches and an Energy Performance Certificate.  This is a detailed examination of your home’s energy efficiency and environmental impact and is carried out by a Domestic Energy Assessor. 

HIPs have been politically controversial and were strongly opposed both in parliament and by various professional bodies whose members would be responsible for the preparation of them.  A legal challenge by the Royal Institution of Chartered Surveyors was responsible for the phased introduction of HIPs.

The rollout on 14th December means that many leasehold properties will need a HIP for the first time.  The Government has accepted that the provision of information initially required to be included within a HIP, such as rent and service charge information, up-to-date insurance etc was taking too long to be supplied by managing agents and, as a temporary concession, the only document that will need to be inserted into a HIP of a leasehold property, in addition to the documents set out above, is a copy of the lease itself.

Conveyancing solicitors have always obtained copies of the legal title and instituted the searches now required to be included in a HIP and can now perform a pivotal role in the initial stages of the  house selling process.  The introduction of HIPs has lead to much greater co-operation between estate agents and solicitors at the very outset of a transaction. 

It was originally envisaged that the marketing of a property could not commence until the compilation of a HIP had been completed.   However a further Government concession has meant that the marketing of a property can commence as soon as instructions have been given for a HIP to be prepared.  Originally this concession was to end on 1st December, but it has been extended to 31st  May 2008.

At Spratt Endicott we work with Domestic Energy Assessors to produce HIPs in-house.  For an average 3 bedroomed house in Banbury the cost of producing a HIP for a freehold property is approximately £375.00 (inclusive of VAT).  The cost of preparing a HIP for a leasehold one will increase to approximately £395.00 (inclusive of VAT)  due to the cost of obtaining a copy of the lease from HM Land Registry.  We offer deferred payment terms to any seller not wanting to pay for the HIP upfront.

David Inch
Partner
Property Logic