Home Information Packs, HIPs have been introduced by the government to increase sales success rates and consumer satisfaction. They provide legal documents and key information about a property, such as local searches and an Energy Performance Certificate, EPCs. Initially from 1st August 2007 HIPs were only required on 4 bedroom homes and larger, followed by 3 bedroom homes advertised after 10th September 2007. HIPs are now required on all properties. 

Contents of the Home Information Pack:

Terms of sale
Evidence of title
Replies to standard preliminary enquiries made on behalf of buyers
Copies of any planning, listed building and building regulations contents and approvals
For new properties, copies of warranties and guarantees
Any guarantee, for work carried out on the property
Replies to local searches
A home condition report based on a professional survey of the property including an energy performance report
An index

Also for lease hold properties:

A copy of the lease
Most recent service charge accounts and receipts
Buildings insurance policy details and payment receipts
Regulations made by the landlord or management company

Exclusions:

• Properties in Scotland and Northern Ireland
• Private property sales where the property is not advertised on the open market e.g. family members
• Non residential property
• Properties sold with sitting tenants
• ‘Right to buy’ sales by the local authority or social landlords
• Lease hold properties with less than 21 years lease remaining

Estate agents and HIPs:
Beware of a growing trend with estate agents to offer alleged ‘Free HIPs’. Do not be enticed by this offer as it is another way for estate agents to try to tie you in.

• Generally estate agent fees are between 1-2%. The ‘Free HIP’ is costed in by inflating the commission rates. The estate agents usually adjust their commission upwards by 0.25 - 0.50%. The cost of a HIP is around £300-£500, the commission adjustment equates to £600-£700. This becomes an expensive HIP.
  
• If you choose to leave the estate agents you will be charged for the ‘Free HIP’, prepared by the estate agent as they will deem this to be marketing costs.
  
• The estate agent will own the HIP, thus preventing you from transferring to another estate agent. It will also carry their logo since it was prepared for/by them.
  
• As you are tied you will not be able to use multiple estate agents.
  
• You will not be able to sell privately, and therefore bound to pay thousands of £’s in estate agents commissions.

Preparation time of a HIP:
The HIP should take from 5 – 14 working days approximately to produce. Prior to marketing your property you must have commissioned a pack (where applicable).

HIP provider:
We have a suggested provider www.thehipprovider.co.uk they were awarded ‘early adopters’ status in October 2006. They can provide you with a HIP throughout England and Wales for £249 + VAT Freehold and £299 + VAT Leasehold if you quote HP4U.

Official HIP website:
http://www.homeinformationpacks.gov.uk/

Home information packs regulations:
http://www.opsi.gov.uk/SI/si2007/20070992.htm