Home Information Packs

What is a HIP?

The government have introduced HIPs in an attempt to improve the process of buying and selling property in England and Wales and to improve the environment through energy awareness. A Home Information Pack will include essential information about a property which was previously not made available to the buyer until later in the process. It will also include an Energy Performance Certificate, rating each property, and highlighting ways to save energy. By making this information available upfront, the intention is to speed up the process of buying and selling property. A Home Condition Report (similar to a survey) can be included as an optional extra, as can guarantees and warranties. HIPs have been tested extensively before the decision to roll out nationally was taken.

What does a HIP include?

The Pack must contain at least the following:

• An Energy Performance Certificate, rating the property on a scale of A to G and suggesting ways to improve its energy consumption. This must be produced by a member of the Government approved certification scheme.
• An index of contents
• A sale statement
• Evidence of title (for registered properties)
• Searches and leasehold/commonhold documents (or proof that these have been commissioned).
• PIQ (Property Information Questionaire)

What are Home Information Packs?

The Home Information Pack (also known as the HIP) is compulsory for most homes on the market in England and Wales. From 6 April 2009, important changes will be made to HIPs. This means better information will be available from the first day a property is put on the market.

Why do you need a HIP?

A HIP 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. 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 about 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. The HIP can help reduce 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.
Listed below are all the compulsory documents that need to be included.

Compulsory documents

The following documents must be included in your HIP:

Freehold properties

• Home Information Pack Index
• the new Property Information Questionnaire (PIQ), from 6 April 2009 
• Energy Performance Certificate (EPC) or Predicted Energy Assessment (PEA)
• sustainability information (required for newly built homes)
• 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 like specialist searches (for example, the seller may choose to include a mining search in a mining area)

Buyers

From 6 April 2009, the HIP must be available on the first day a property is marketed for sale. If you are buying a property, just ask whoever is advertising it for sale for a copy of 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. However, they may make a reasonable charge to cover the costs of copying and posting it.

 

Sellers

From 6 April 2009, the 'responsible person' (in most cases, the estate agent) will not be allowed to market your property unless the HIP is available. You'll need to make arrangements to have a HIP compiled (including paying for it) along with other preparations for selling your home. However, if there's a delay in getting certain documents, like the local searches, these can be added after your house is put on the market.

Who compiles the HIP?

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, like the HIP Code.

 

Who pays for the HIP?

The seller is responsible for the cost of a HIP. The cost can vary so make sure you shop around. Some providers may offer HIPs that you can pay for at a later date but you should always check the terms and conditions of your contract.
For a more detailed guide, read 'HIPs: a seller's guide' and 'HIPs: more information for sellers'.

 

What will a pack look like?

There isn't a standard 'look' for a Home Information Pack. However, it must include all of the compulsory ('required') items. Certain important documents must be no more than three months old when the property was first marketed for sale.

 

Why 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's less chance of buyers becoming aware of any surprises at the end of the process. The HIP can help reduce delays and extra expense to the buyer and seller.
You don’t need a HIP for:

• properties where there is no marketing, for example if you are selling to a member of your family
• non-residential properties
• properties limited by law to use as holiday accommodation or occupation for less than 11 months per year
• mixed sales, for example a shop with flat
• sales of portfolios of properties, for example selling two properties together
• properties not being sold with completely vacant possession, for example with a sitting tenant
• unsafe properties and properties due to be demolished
• properties sold through the ‘Right to Buy’, ‘Right to Acquire’ and ‘Social HomeBuy’ home ownership schemes

New builds

You need to provide a HIP for newly built properties. For details of what needs to be provided for a newly built property, follow the link below.

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.
From 6 April 2009, the HIP must be available and contain the following documents on the first day a property is put on the market:

• Home Information Pack Index
• Property Information Questionnaire (PIQ)
• Energy Performance Certificate (EPC) or Predicted Energy Assessment (PEA)
• sustainability information (required for newly built homes)
• sale statement
• evidence of title

If the following documents are unavailable when marketing begins, they should be added to the HIP as soon as they are available. These documents must be included within 28 days of the date the property was first placed on the market:

• standard searches (local authority and drainage and water)
• a copy of the lease for leasehold properties
• commonhold documents, where appropriate

For more detailed information on the compulsory and optional documents and how to get them, follow the links below.

Compulsory documents for a HIP

The following documents, numbered from one to seven, must be included in a HIP. A copy of the lease and commonhold documents must be included, where appropriate.

 

1: The Home Information Pack Index

The Index lists the documents contained in the HIP and provides a checklist for sellers, buyers, estate agents and enforcement authorities.
If a document that must be included in the HIP is unavailable, the Index must say so, give the reason it is missing, and list what steps are being taken to get it.
The Index should be updated whenever documents are added or removed.

 

2: Property Information Questionnaire (PIQ)

The Property Information Questionnaire needs to be completed by the seller. It provides a helpful checklist of simple information about a property buyers need to know before making any decision on the property.

See ‘HIPs: compiling a Home Information pack’ for more information about the PIQ and how to complete one.

 

3: Energy Performance Certificate/Predicted Energy Assessment

The Energy Performance Certificate (EPC) gives home owners, tenants and buyers information on the energy efficiency of their property.
New homes sold 'off-plan' will need to include a Predicted Energy Assessment (PEA). The PEA should be replaced by an EPC when construction of the property is complete.

 

4: Sustainability information for newly built homes

The Code for Sustainable Homes measures the environmental impact of a new home against nine categories. The code requirements only apply to new homes where a local council has received a building notice, initial notice or full plans application after 1 May 2008. 
Newly built homes must have either:

• a certificate (or interim certificate) showing the sustainability of the home assessed against the standards under the Code for Sustainable Homes 
• a nil-rated certificate where the property has not been assessed against the Code

 

5: Sale statement

The sale statement provides some basic information about the property, including:

• the address of the property being sold 
• whether the property is freehold, leasehold or commonhold 
• whether the property is registered or unregistered 
• whether or not the property is being sold with vacant possession, for example with a sitting tenant 
• in what capacity the seller is selling the property (for example, selling on behalf of a deceased owner)

 

6: Evidence of title

These documents prove who owns the property.

Registered property

If the property is registered, certain documents that are available on request from the Land Registry must be included in the HIP. These provide an up-to-date official record of who owns the land, and consist of:

• official copies of the individual register (made up of a property register, proprietorship register and, typically, a charges register)
• an official copy of the title plan

In the case of the sale of a commonhold interest, official copies of the register and title plan should be produced for both the unit and common parts.

Unregistered land

For sales of unregistered land, the HIP must include copies of a certificate of an official search of the index map (from the Land Registry). Also, it must have the documents that the seller intends to rely on to provide evidence of title to the property and the right to sell it.
To find out more about registered and unregistered land, contact the Land Registry.

 

7: Standard searches

The Home Information Pack must include:

A search of the local land charges register for the property being sold

This is carried out by a local council or personal search company and you’ll receive an official search certificate.

A search of the records held by the local authority on matters of interest to buyers

This includes planning decisions and road building proposals. These are referred to as local enquiries in the Home Information Pack Regulations and are carried out by a local authority or personal search company.

Details of the provision of drainage and water services to the property

The local water company or a personal search company can be used (however, the search must comply with the HIP Regulations).
See the section on ‘Finding your local council or a personal search company’ in ‘HIPs: Compiling a Home Information Pack’ for more information about land searches.

 

Leasehold and commonhold properties

A copy of the lease is the only additional required document in a HIP for the sale of a leasehold property.
Find out about compulsory and optional documents for leasehold and commonhold properties.

 

HIPs: optional items

There are two types of document included in a Home Information Pack: required (compulsory) and authorised (optional). It is up to the seller whether they include these optional documents. This could include a Home Condition Report, a legal summary or a home contents form.

Home Condition Report

A Home Condition Report contains information about the physical condition of a property, which sellers, buyers and lenders will be able to rely on legally as an accurate report.
It is similar to a Homebuyer Survey and can let the seller and buyer be aware of any works or repairs that are needed to the property.
The report:

• must be carried out by a certified Home Inspector
• must be written in plain English and not include technical jargon
• gives you comprehensive information on work or repairs needed to the property, reducing the chance of nasty surprises later on

Benefits of a Home Condition Report

Sellers

You have an early opportunity to carry out repair work on the property or get quotes before marketing your property. By giving buyers a clearer idea of your property, it reduces the risk of a buyer pulling out later in the process due to an unforeseen problem and gives your property an additional selling point.

Buyers

If the seller has included a Home Condition Report, you can use it at the beginning of the home-buying process to reduce the risk of being faced with unexpected repair bills and other surprises when you buy the property.
Buyers and their mortgage lenders have a legal right to rely on the report, so you can give the report to lenders when they make their valuation. This means they may not have to repeat a detailed site inspection at your cost.

Legal summary

HIPs may contain some complex documents that can be difficult to understand. The HIP can contain an optional legal summary, which is just a simple summary of all the legal documents. A solicitor or HIP provider will be able to produce a legal summary.

 

Home use/contents forms

Home use and home contents forms let sellers give buyers information on a range of matters relating to the property.
This includes information on:

• boundaries
• notices
• services
• sharing with neighbours
• planning permissions

It is usual for sellers to declare which fixtures and fittings and other contents of the property are:

• included in the sale
• excluded from the sale
• subject to negotiation

From 6 April 2009, a Property Information Questionnaire (PIQ) will become a compulsory part of the HIP and will replace the home use form.
You can download a sample home contents form and Property Information Questionnaire. There are two types of questionnaire; one for newly built homes and the other for all other property types.

Searches

The standard searches need to be included in HIPs, but they can also contain non-standard searches. This can often speed up the sale of the property.
For example, it's standard practice to obtain a mining search in areas where coal mining has taken place. Sellers in these areas could save time if they provide this search in the HIP.
Other non-standard searches cover rights of way, ground stability and actual or potential environmental hazards such as flooding and contaminated land.

Guarantees and warranties

Guarantees and warranties for work already carried out on your home, such as damp proofing, may be included in the HIP.

How will Smart Step be able to help me with HIPs?

Smart Step is one of Yorkshire’s only Properties Agents who are also HIP providers. We will find the best solution for our customers and will be offering the packs at a discount for all people advertising their property through us.