From August 1st 2007 anyone selling a four-bedroom house in England or Wales is legally obliged to produce a HIPs Pack for any interested purchasers. It is expected that HIPs Packs will be introduced in Scotland in 2008. The government has recently amended the policy to allow sellers to start marketing and then obtain a Hip, rather than having to have a HIP in place before putting the property up for sale.

HIPs contain key information and documents about the property, including an Energy Performance Certificate, Title Deeds and Local Authority Searches. The packs were due originally to be introduced in June for all houses being put on the market, but due to pressure from the property industry and a deficit of qualified energy assessors, smaller properties are to be phased in gradually. Once more energy assessors are trained (they provide the new compulsory Energy Performance Certificate - EPC), then the requirement to have a HIP will be extended to smaller properties.

Energy Performance Certificate (EPC)

Most of the HIP's contents are documents that the buyer's solicitor would need during conveyancing, apart from the newly required Energy Performance Certificate. This is a report by a qualified energy assessor - providing a rating of your home's energy efficiency. The property is graded from A to G (A is the top award for energy efficiency)and recommendations are offered to improve the property's energy performance.

Home Information Packs (HIPs) Required Documents

These documents are compulsory:

• A contents index


• A Sale Statement - including: details of the seller, the address of the house for sale, whether the property is freehold, leasehold or commonhold and has vacant possession


• Evidence of Title - proof the house is registered and the seller owns the property and therefore has the right to sell it.


• An Energy Performance Certificate (EPC) - report from a qualified energy assessor


• A Drainage and Water Search - details of drains serving the property (from local water company)


• A Local Search - details of any planning permissions, building regulations and listed building consents granted in respect of the property, any compulsory purchase orders
  and any plans for new roads in the vicinity of the property


• Copies of any warranties and guarantees on new properties (from local authority)

Home Information Packs (HIPs) Authorised Documents

These may be included at the seller's discretion:

• A Home Condition Report - a basic survey of the house by a qualified Home Inspector


• A Home Contents Form - a list of exactly what is included in the sale, such as carpets, appliances, outbuildings, etc

HIPs Advantages

The Home Information Pack should improve and speed up the house buying and selling process.

The packs should help first-time buyers with the stressful and complicated process of buying their first home.

Allow purchasers to make an informed decision - many house sales fail at the last hurdle during the conveyancing period, when awaited searches reveal faults, etc. HIPs should reduce the need for renegotiation.

Disadvantages

The upfront cost to the seller - packs are likely to be around £300-£600. There is a fear that in some metropolitan areas the cost could rise to £1,000, as prices are not regulated.

The information provided in the Home Information Pack may go out of date fairly quickly - some solicitors are already advising buyers to get their own searches done and some mortgage providers may require new property searches.

Home Information Packs can be either purchased from specialist providers or estate agents.

Fiona Howard writes for Loansite the leading UK online site for finding a fast Loan or Mortgage Find the latest news and price trends on property in the UK

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