Home Information Packs - Latest News

A Home Information Pack (HIP) must be ordered before any residential property can be put on the market for sale.  From 1 August 2007 this law only applied to homes with 4 bedrooms or more, but from 10 September 2007 it also applied to 3 bedroom homes, and from 14 December 2007 to all other properties.  If the property has been on the market since before the relevant date, a HIP is not required.
 
A HIP is a pack containing some of the legal information that a buyer’s solicitor is going to need to check, and a certificate by a qualified energy assessor as to the energy efficiency of the property.  The compulsory elements of the HIP currently are:

  • An index
  • An energy efficiency certificate
  • A local and drainage search
  • A copy of the title
  • (for properties less than 10 years old) unexpired new homes warranty(for leasehold properties) a copy of the lease

Optional elements of the HIP – for the time being - will be:

  • Additional searches relevant to the property
  • Relevant documents referred to in the title
  • Building repair certificates and guarantees
  • A Home Condition Report (HCR)
  • Leasehold management information, such as service charge accounts and receipts, block buildings insurance details and management company membership documents and regulations

HIPs are widely available through solicitors and other organisations.  Because they contain a lot of technical legal information it is sensible to get a HIP from a solicitor who handles residential property conveyancing, who will be able to give advice on the details of the legal searches and other documents.

For the time being, it will not be a requirement to have a HIP in place before the property is marketed.  As long as you have applied for one, you can start marketing straight away.  This concession is expected to be lifted on 31 December 2008.

Also on 31 December 2008 it is expected that the leasehold management information will become a compulsory part of the HIP.  Some managing agents or landlords currently take several weeks to provide this information.

It is therefore expected that potential sellers will rush to get their HIPs before the 31 December 2008 deadline – particularly if they own a leasehold flat.

Anyone thinking of selling their house or flat in the near future will be best advised to order their HIP from their solicitor some weeks before they go to see an estate agent with a view to putting their house on the market.