HIPs - is this the end?
HIPs were designed to increase certainty and inform buyers about a property before any costs were incurred, but the requirement for a HIP has been suspended pending the Government's stated intention to scrap them altogether.
A Home Information Pack (HIP) was a collection of documents that had to be provided before a property in England and Wales could be put on the open market for sale with vacant possession.
As from the 6th April 2009 a HIP was required for any residential property and new rules applied relating to its contents.
A property will not be able to be marketed unless the HIP contains:
- Index
- Property Information Questionnaire (PIQ)
- Energy Performance Certificate (EPC) or Predicted Energy Assessment (PEA) (although marketing can start without these documents 14 days after their request if they are not yet available but are expected to be available within 28 days of the original request)
- Sale Statement
- Office Copies and Title Plan (or if unregistered a SIM and an Epitome of Title or Abstract of Title or confirmation that those documents have been ordered and are expected within 28 days)
- If leasehold, a copy of the lease, or confirmation that it has been requested and is expected within 28 days
- Searches (Local and Water and Drainage) or confirmation that those documents have been ordered and are expected within 28 days
When did the requirement for Home Information Pack come to an end?
As from the 21st May 2010 the need for a HIP was suspended but the need for an EPC has been retained.
Why were Home Information Packs introduced?
There are a number of reasons given by the Government:
- To make properties more energy efficient and cheaper to run
- To make properties release fewer harmful emissions into the atmosphere
- To improve the condition of our housing stock
- To make the home buying and selling process more transparent, quicker and less stressful
Were Home Information Packs delivering the above?
One of the main problems with HIPs was the cost incurred by sellers in order to bring their property to market and the fact that a buyer may not necessarily make any saving as they may have to undertake the same or other searches and/or have another survey or valuation done in order to satisfy themselves and/or their lender.
What have we learnt from HIPs?
Whilst the full HIP was an expensive requirement, it did 'ease' the selling process. The availability to the solicitor undertaking the conveyancing of as much property information and documentation at the outset of a deal is 'key'. There is still documentation that can be voluntarily provided in advance for production to your potential buyers, at little or no extra cost
Can we help you with this?
Please e-mail Jenny Axe or Tel: 01256 320 555 and she will be happy to provide you with further information you need when selling or buying a property.
Contact the experts
Please e-mail Jenny Axe or direct who'll be happy to provide you with any information you need on HIPs.
