Home Information Packs (HIPs)

The Home Information Pack (also known as the HIP) is compulsory for all homes on the market in England and Wales.

It is a set of documents that provides the buyer with key information on the property and must be provided by the seller or the seller’s agent.

Why do you need a HIP?

It is a legal requirement to have a HIP and you can’t market your property without one. The HIP lets buyers see important information on the property at the start of the process, free of charge.

This means there is less chance of buyers becoming aware of any surprises at the end of the process that can cause delays and extra expense to the buyer and seller.

What does a HIP contain?

The HIP is made up of required (compulsory) and authorised (optional) items.

There shouldn’t be any marketing or advertising material in the pack, so make sure it contains official information only.

Compulsory documents

The following documents must be included in your HIP:

Freehold properties

Home Information Pack Index
Energy Performance Certificate (EPC)
Sustainability information (required for newly built homes only)
Sale statement
Evidence of title
Standard searches (local authority and drainage and water)

Leasehold properties

All the compulsory documents above
A copy of the lease

Optional documents

Other documents can be included within your HIP but these are optional. If they are included it could help to speed up the sale and ensure that the process goes more smoothly. These include:

Home Condition Report
Legal summary
Home use/contents form
Other documents such as specialised search reports (for example, the seller may choose to include a mining search in a mining area)

Buyers

If you are buying a property, just ask whoever is advertising it for sale for the Home Information Pack. This is usually an estate agent, but could be another business or individual.

They must give you a copy of the pack free of charge (although they may make a reasonable charge to cover the costs of copying and posting it).

Sellers

The person responsible for marketing a property (in most cases, the estate agent) must have commissioned a HIP by the time that the property is on the market.

Who compiles the HIP?

You can compile it yourself or you can hire an estate agent, solicitor or HIP provider to do it for you. Always make sure that your HIP provider is signed up to a code of practice, such as the HIP Code.

Who pays for the HIP?

The seller is responsible for the cost of a HIP. The cost of the HIP can vary so make sure you check the market rate. Some HIP providers may offer free packs, or a no-sale, no-fee arrangement, but you should always check the terms and conditions of your contract.

How long does a HIP last for?

While the property is on the market, there is no need to update the HIP. If the sale of your property stops and then starts again, you may have to compile a new HIP and provide up-to-date documents.

However, you can carry on using the same HIP without the need to update any of the documents where:

marketing stopped because an offer was accepted and the sale has fallen through (but remarketing must start within one year of the date when marketing first began or, if later, within 28 days of the sale falling through)
marketing has stopped for any other reason and the seller remarkets the property within one year of the date when marketing first began.

The effect of this is that the HIP has a shelf-life of at least 12 months for the seller.

The only exception is the validity of the Energy Performace Certificate(EPC). When and EPC is part of a HIP it is valid for three years. Therefore it will be required to be renewed if the property in question is marketed continously for a greater period.

What will a pack look like?

There isn’t a standard ‘look’ for a Home Information Pack. The only requirements are that it includes all of the compulsory (’required’) items and that certain important documents were no more than three months old when the property was first marketed for sale.

New measures to benefit home buyers and sellers

A new package of measures to ensure consumers receive improved information in the home buying and selling process was announced today by Housing Minister Margaret Beckett.

As part of a series of further improvements to the Home Information Pack (HIP), consumers will receive more helpful information about their future home.

A new Property Information Questionnaire in the pack will provide a summary of information about their property in one place, helping buyers make decisions about whether to view a property, and ultimately whether to make an offer.

Making HIPs available sooner

It is essential that buyers are able to see information in the HIP as soon as possible. However, sellers can currently commission and pay for a HIP and then start marketing their property for up to 28 days before the pack is available, meaning some buyers may lose out by making decisions about purchases without the benefit of seeing the pack.

The regulations on first day marketing will change from 6 April 2009, to ensure buyers have certainty that the HIP will be available as soon as a property comes onto the market, and that sellers get to see the product they are paying for.

Expanding HIP content

Details in the Property Information Questionnaire (PIQ) will include flood risk information, gas and electricity safety, service charges, structural damage and parking arrangements, to help buyers make decisions on whether to view and purchase a property.

The new PIQ will go alongside other important information in the pack, such as energy performance certificates.

For more information on Home Information Packs, please go to: www.homeinformationpacks.gov.uk or speak to Ian King or Adam Wyn-Griffiths at Humberstones on 0121 678 7788.