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Everything you would ever have wanted to know about Home Information Packs
- if they hadn't been abolished
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They have been described as the single biggest change in the way property is bought and sold in Britain
since – well, since forever. Yet since they were first mooted before the 1997 General Election that
brought New Labour to power, Home Information Packs - or HIPs, for short – have been plagued by
indecision and controversy.
Frustratingly slow and often ending in disappointment, the system for buying and selling property in this country has long been
overdue for a major overhaul. The Government’s preferred solution has been to introduce compulsory Home Information Packs, or HIPs.
The original idea behind HIPs was simple enough. By bringing together all the legal documentation relating to a sale right at the start of
proceedings – instead of waiting for the buyer’s solicitor to set the ball rolling – buyers would be able to make much
better-informed decisions, sales would progress much quicker, and fewer transactions would fall through.
So far, so good. Unfortunately, it didn’t stop there. With its constant dithering and last-minute policy U-turns, the Government
has succeeded in turning a basically sound idea into a complete shambles.
Little wonder then that there’s so much confusion about the subject. That’s why we’ve put together this list of
frequently asked questions and answers to help you make sense of the current state of play on HIPs. However, things are changing
all the time - so, if you’re still confused or if you want to get the most up-to-date information – give us a call!
To View a HIP, please click on the full details and Click View HIP. Remember the government has phased in the requirements to provide HIPS and not all properties currently on the market will have a HIP available. |
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Who needs to have a HIP? |
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From 14th December 2007, all residential property being offered for sale must have a HIP. If you put your home up for sale before that date (in case of 1 or 2 bedroomed properties), or before September 10th (in the case of homes with 3 bedrooms), or August 1st (in the case of 4 or more bedrooms), and it is still on the market, you do not currently need a HIP (although the Government reserves the right to name a final cut-off date). Until June 1st 2008.
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What is the purpose of HIPs? |
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The Government believes that by requiring sellers to provide information about a property upfront, buyers will be able to make better-informed decisions. As a result, sales are expected to progress more quickly, and fewer will fall through. In addition, the HIP will provide the buyer with important information as to the efficiency of the home in terms of energy use.
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What does a HIP contain? |
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Several compulsory items: an Energy Performance Certificate, a sale statement, title details, local searches and an index. In addition, if the property is leasehold, details of the lease, service charges and insurance must also be enclosed.
In addition, a number of optional items can be added, such as a full Home Condition Report, Home Use Form, and a list of any fixtures and fittings that are to be included in the sale. |
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What is an Energy Performance Certificate? |
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An EPC, which can only be prepared by a qualified and officially accredited Domestic Energy Assessor, is designed to give a comprehensive picture of the energy efficiency of a property, complete with a rating similar to the ones that appear on items like fridges, graded A-G. It also contains information and suggestions on how this rating can be improved – for example, through the installation of cavity wall insulation. However, these are only suggestions. There is currently no legal obligation on homeowners to act on them. Similarly, there are at the present time no plans to use these ratings as a basis for calculating Council Tax charges.
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Who is responsible for putting a HIP in place? |
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The person marketing the property – whether that be an estate agent, a solicitor, or even a private seller.
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Can I sell my house without a HIP? |
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If you sell privately - for instance, to a friend or a relation – without any marketing whatsoever, then the answer is yes.
However, if you place an ad in your local paper or erect a For Sale board outside your home – or even if you mention it to all of your friends! - then in the eyes of the law that constitutes marketing, so you will need a HIP. |
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Who does the HIP belong to? |
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This is a very interesting question. In simple terms, the HIP belongs to the person who pays for it. Generally speaking, therefore, you should avoid any offers of a “free” or “no sale, no fee” HIP, since this means that it will remain the agent’s property. This could make life complicated if you want to exercise your right to change agents for any reason at a later date. Fisks would advise clients that to retain control, you need to own the HIP - which of course means paying for it upfront, either with your credit card, or via the kind of deferred payment agreement which most reputable agents will also offer. Under such an agreement, you own the HIP from Day 1, but you only pay for it on completion, or after a set number of months.
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How much does a HIP cost? |
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As with all property transactions, it’s very dangerous to generalize. However, in South East Essex and East London, the cost currently ranges upwards from £299 plus VAT.
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Doesn't this all add to the cost of moving house? |
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Yes, but not necessarily by much – particularly when compared to the other costs involved. The one entirely new cost is the Energy Performance Certificate, which has to be prepared by a qualified Domestic Energy Assessor. All the other costs – the searches, for example - are already part and parcel of the system. The only difference is that in the past, it was the buyer who paid for them. Now, with HIPs, it’s the seller who pays. So, if you’re selling in order to buy something else (like most of us), then the difference is marginal.
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Are HIPs really here to stay? |
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Who knows! In many ways, the whole thing has been a shambles – as Parliament’s own watchdog on legislation concluded some months ago. The Government has moved the goalposts so often that it would be a brave man who made any definite predictions. The Conservatives have pledged to repeal the legislation as soon as they get into power. Parts of the scheme have been opposed throughout by estate agents, solicitors, surveyors and mortgage lenders – in fact, everyone involved in the housing market. Claims about the huge improvements in energy efficiency and savings in carbon emissions have already proved to be complete nonsense. The only people who have consistently supported HIPs are the Domestic Energy Assessors, who hope to make a nice living out of them, and (of course) the HIPs industry itself!
However…we are where we are. So, for the moment at least, we all have to take HIPs seriously.
But if you’re thinking of selling in the near future, our best advice would be to give us at Fisks a call, or…
WATCH THIS SPACE!!! |
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Fisks ltd
146a London Road
Benfleet
Essex
SS7 5SQ |
| Tel: |
01268 565555 |
| Fax: |
01268 566291 |
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