The introduction of HIPs is being driven by the Department for Local Communities and Government (DCLG) with two main objectives in mind:
1. Approximately 30% of property sales in the UK fall through causing frustration and expense for all involved. A HIP which includes a Home Condition Report will provide a detailed survey, legal searches and proof of title to enable a buyer to make a more informed decision much earlier in the process.
2. To meet the Governments EU directive to measure and improve energy efficiency of UK housing an Energy Performance Certificate is required and included. This will provide a specific energy ‘rating’ as well as comments and advice on how the property could be made more environmentally friendly.
From 1 June 2007, home owners in England and Wales will need to prepare a Home Information Pack before putting their home up for sale. HIPs will not be required when selling the following:
- Non-residential property
- Mixed commercial and residential property
- Sales of tenanted properties
- Properties with leases of less than 21 years
- Private sales where the property is not marketed
- Unsafe (uninhabitable) properties and properties for demolition
3. What's in a HIP?
A Home Information Pack consists of ‘Required Content’ and ‘Authorised Content’. All documentation must be accurately referenced in an index that has to be updated every time a document is added or changed. Below are details of the documentation that is included within each section:
Required Content
The following documents are ‘Required Content’ and must be included within a Home Information Pack:
• Index – should list all documents included in the pack, as well as any missing documents that are to be included later.
• Sale Statement – a brief statement of property being sold.
• Land Registry Title & Plan – up-to-date official record of who owns the land
• Energy Performance Certificate
• Copy of the New Homes Warranty (applicable for new builds or converted properties)
• Local authority searches
• Drainage and water search
• Additional documents for Leasehold Properties (including a copy of the Lease and Landlords details)
Authorised Content
Although the following authorised documents and information do not have to be provided in Home Information Packs. The regulations strongly recommended that their inclusion where they are relevant to the property and/or its sale and are likely to be of interest to potential buyers. In particular, the regulations strongly recommended that Home Contents and Home Use forms are included.
Authorised documents or information may be added to the pack at any time but it is recommended that where possible they are included from the outset to avoid potential delays.
• Home Condition Report - a report giving the buyer, seller and mortgage lender important information on the physical condition of the property
• Information identifying the property, for example, a map, plan or drawing
• Information about the source or supply of any pack document, including additional Land Registry documents for Common or Leasehold properties
• Warranties or guarantees to provide evidence of work undertaken to remedy defects highlighted in the Home Condition Report
• Warranties, insurance policies or guarantees which exist for the property outside of that described above, that may be of interest to the buyer
• Additional searches relating to the sale of the property including a environmental search, mining search, flood risk search or searches relating to telecommunications or transport
• Additional searches that relate to other land or property in the vicinity of the property provided. For example a person selling a house in a rural or sea-front location with a desirable view, might want to show that there are no plans to develop adjacent land.
• Home Use Form
• Home Contents Form
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