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Home Information Pack (HIP)
Home Information pack (HIP) and Home Condition Report (HCR)
From 1st July 2007, every property put up for sale in England and Wales was due to have provided potential buyers with a Home Information Pack (HIP). However due to consumer and market concerns about the scheme and delays with the implementation of Home Information Packs (HIPs), it was decided by the government that there would be a phased launch. From the 1st August 2007, every home put on the market with four or more bedrooms was required to have a Home Information Pack (HIP). Homes with 3 or more bedrooms marketed for sale from 10th September 2007 will require a Home Information Pack (HIP) also.Home Information Packs (HIPs) is a government initiative aimed at providing the kind of information which a potential buyer would want to know before making an offer on the property, thereby shifting some of the burden of gathering this information from the buyer to the seller. By offering this information at the beginning of the sales process, it is hoped it will cut down the number of property transactions which break down later on when the buyer finds out something about the property which puts them off completing the purchase.
As well as including all relevant documentation concerning the property in one place, such as local authority searches and lease details, the HIP also includes two new documents; one mandatory and the other voluntary.
The mandatory document is the Energy Performance Certificate (EPC). This European Union-inspired initiative aims to give a full breakdown of the energy efficiency of a property, such as whether the property has single, double or triple glazed windows, cavity wall insulation and/or micro-generation technology, e.g. solar panels or a wind turbine. By providing a full diagnosis of how energy efficient a property is, the EPC gives an indication of how much a potential buyer will be spending on energy bills and what work can or needs to be done to improve the property's green credentials. With homes in the UK accounting for 25 per cent of the carbon emissions produced by this country every year, improving the energy efficiency of property will be a huge thing going forward and the EPC helps to highlight the pros and cons of each property.
The voluntary document is the Home Condition Report (HCR). The HCR is a mini-survey which gives potential buyers information on what state the property is in and an idea of what work, if any, is needed on the home. Included within the HCR is information on the structure, drainage and a general report on the 'wear-and-tear' both inside and out.
Both documents are completed by an independent home inspector, whose aim is to give an objective and unbiased assessment of the property. While it is no substitute for a full structural survey, it gives a fairly thorough view of the property which is up for sale. We have a number of HIP providers who will be able to sort out a pack for you, with approximate costs for a pack around £500-600 including the HCR and £400-500 without one.
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