What is a Home Information Pack (HIP) and why do I need one?

From 1st August 2007, the Government introduced Home Information Packs with the aim to improve the home buying and selling process in England & Wales and further help reduce excess carbon emissions from homes.
A HIP is a set of documents providing important information about a property, such as its energy efficiency, boundary ownership and planning permissions. The purpose of the pack is to provide information earlier in the process, to improve the speed and conclusion of transactions and reduce wasted costs.

How will this affect selling a property and buying another?

A property can be marketed as soon as a HIP has been ordered. This is a short term measure which will be reviewed by the Government at the end of 2007.
Providing more information up front will allow potential buyers to make an informed decision when making an offer. This reduces the risk of problems occurring later in the process. Your HIP Agent can provide advice on how the HIP will be presented and what information it should contain for particular properties.

What does a HIP contain?

The following documents are specified as 'Required Content' and must be included:

• Index
• Sales Statement
• Land Registry Title & Plan
• Energy Performance Certificate
• Local Authority Searches
• Drainage and Water Searches
• Additional Documents for Leasehold Properties
• Copy of the New Homes Warranty (if applicable)

The following 'Authorised Documents' do not have to be included. However, based on your individual property details, they may be recommended to assist with your sale:

• Home Condition Report
• Additional Property Searches including Environmental Searches, Warranties and/or Guarantees
• Additional Land Searches
• Home Use and Home Contents Form

Are the contents of the HIP easy to understand?

Sellers are recommended to familiarise themselves with the contents of their own HIP although your HIP Agent will explain these as part of their service. The legal documents should only be interpreted by a qualified Conveyancer/Solicitor. Your HIP Agent can recommend a suitable firm to answer any questions on HIPs produced for sellers and any HIPs for properties they may decide to buy.

How much will a HIP cost?

The cost of the HIP will vary according to the property type and the way the HIP is presented. Payments can be made either by credit/debit card or by a simple deferred payment (credit) arrangement. It is important to remember that some of the costs involved in producing the HIP already exist in the conveyancing process and should therefore reduce costs normally incurred at a later stage.

Who orders a HIP and how long will it take to put together?

DH Finance Solutions can order HIPs from a HIP provider which will contain all the documents required. In most instances, a HIP will take 5-7 working days from when the pack has been ordered. You can be sure that the information included will be produced to the highest standards, with accuracy guaranteed. Contact us NOW on 0845 643 1537.