Ensuring that a HIP is in place and available to potential buyers
HIPs are designed to increase certainty and inform buyers about a property before any costs are incurred.
A Home Information Pack (HIP) is a collection of documents that must be provided before a property in England and Wales can 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
- The Searches (Local and Water and Drainage) or confirmation that those documents have been ordered and are expected within 28 days
How much does a Home Information Pack cost?
The estimated costs for typical Home Information Packs varies from supplier to supplier. Clarke & Son can compile the HIP for you and our fee structure is as follows:
- For a freehold registered property up to five bedrooms, the HIP (including Searches and an EPC) costs £375 inclusive of VAT
- For a leasehold property the costs is £395 inclusive of VAT
If your title is unregistered or your home has more than five bedrooms the cost may be a little more (probably no more than £50). We will confirm when you contact us.
Who will pay for the Home Information Pack?
The seller of the property pays for the HIP. We take a payment on account up front to cover the full cost.
How long will it take to compile a Home Information Pack?
Most freehold HIPs will be compiled within 5 working days and whilst information such as search results are awaited the property can still be marketed.
When can the property be marketed?
A vacant residential property cannot be marketed without a HIP having been commissioned first and without the majority of components including the Property Information Questionnaire having been obtained.
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.
Are Home Information Packs delivering the above?
As with most things in life, you usually get what you pay for so beware of cheap HIPs or HIPs being offered for free. Buying and selling property is one of the most important things we do.
TIP: Ask your estate agent why he or she is recommending a particular HIP supplier.
Procedure Sheet For Clients
Obtaining a HIP. Client procedure from start to finish.
Contact the experts
Please e-mail either Jenny Axe or Paul Cowdery direct who'll be happy to provide you with any information you need on HIPs.
