Home Information Packs - a Quick Guide

In recent months in the UK there has been a lot of discussion about the newly introduced Home Information Packs (HIPs).  On television and in newspapers much has been made of the HIP and the impact it will have on the UK house buying process.  If you live in the UK and are looking to sell your house it is important that you familiarise yourself with what the Home Information Pack is, why they have been introduced and the documents they contain.

What is the Home Information Pack?

Home Information Packs were introduced by the UK government in August 2007.  All homeowners are now required to make a HIP available to potential buyers of their property at the time of the property going on sale.  The first properties for which the HIP was made compulsory were those with 4 or more bedrooms.  Sellers of homes with fewer than 4 bedrooms were required to make the HIP available from the end of last year and so now the HIP legislation covers all homes being sold in the UK.

Why have Home Information Packs been introduced?

By introducing the Home Information Pack the government hoped to simplify and speed up the process of buying a new house.  Their main benefit is that they allow buyers and sellers of property to carry out transactions with all the relevant information being immediately available to both parties. 

Previously much of the information usually required by a buyer of a property only became available once an offer to purchase the property had been made.  The inevitable result of this was that many home sales broke down at a late stage due to previously hidden problems with the property becoming apparent.  With buyers effectively negotiating in the dark a large amount of time and money was wasted on legal fees.  The early signs are that the HIP has been successful in overcoming many of these problems.

What does the Home Information Pack contain?

Every HIP contains a number of documents.  Some of these documents are mandatory and so must be included whilst others are optional and are included when applicable or at the discretion of the home owner.  Mandatory documents include a summary of the terms of the sale, evidence of ownership of the property and any standard searches such as those relating to drainage and water.  Optional documentation that may be part of the HIP includes entries relating to additional leasehold information and any existing guarantees or warranties.   Also optional is a Home Condition Report (HCR).

A much publicised part of the Home Information Pack is the Energy Performance Certificate (EPC).  The EPC shows the current energy efficiency rating of a property as well as highlighting cost effective ways in which the rating can be improved. 

Home Information Packs usually cost around £300.  People selling their home can purchase the HIP from a local estate agent, solicitors or from a specialist HIP provider.