The government last year introduced the Home Information Pack as a requirement for anyone selling a house. The scheme is designed to make home sales less fraught with uncertainty, but what is a HIP, who needs one and what should be in it?
** Please note that the government has scrapped Home Information Packs with immediate effect - However, Energy Performance Certificates will be retained **
What is a HIP?
A HIP, or Home Information Pack, is a set of documents that provides potential buyers with information on your property.
By law, you must make a HIP available before you can put your home on the market. The idea is that making certain information freely available to potential buyers before they even view your home will reduce delays and expense at the end of the sale process, when issues like surveys have often caused problems in the past.
Do I need a HIP to sell my home?
It is legal requirement to have a HIP and you cannot sell your home without one, though there are some exceptions. These include:
- Private sales, for instance if you are selling to a member of your family
- Non-residential properties
- Some holiday homes
- Mixed use properties, for instance a shop with a flat above
What should be included in a HIP?
It is compulsory to include certain information in a HIP. This includes a HIP Index, a Property Information Questionnaire (from April 2009), an Energy Performance Certificate (which sets out how energy efficient your home is), a sale statement, evidence of title (to prove you own the property) and standard searches (local authority, drainage and water).
There are also a range of documents you can include on a voluntary basis, such as Home Condition Report and specialist searches.
How do I go about putting a HIP together?
There are a number of options. You can either ask your estate agent to do it, use a solicitor or a specialist HIPs provider or do it yourself. The decision really comes down to the time it would take to do it yourself (and how confident you are of getting it right) versus the cost of having someone else do it for you.
How much does a HIP cost?
Typically, having a HIPs compiled for you costs around £300 to £350, but shop around because some providers will complete a HIP for as little as £175.
How do I find a HIP provider?
First of all, shop around to make sure you are getting a good deal. It is also important to use a contractor who has signed up to the HIP Code. The code is regulated by the independent Property Codes Compliance Board, which has a list of registered firms.
What do I need to know if I want to do it myself?
To begin with, you need to be fully aware of which documents are compulsory (see above). Then you will need to set about gathering all the required information:
- Complete a Property Information Questionnaire (PIQ), based on a standard template
- Arrange for a qualified accredited Domestic Energy Assessor or qualified certificated Home Inspector to do your Energy Performance Certificate.
- Go to the Land Registry for evidence of title and a copy of the lease, if required
- Contact a solicitor or licensed conveyancer to arrange the searches, or get them direct from the appropriate local authority or a personal search company
- Complete a HIP index, to set out what is included in your HIP.
Can I charge potential buyers for a HIP?
No. A HIP must be provided free of charge, though you are allowed to make a reasonable charge for copying and postage.
How long does a HIP remain valid?
A HIP is valid for 12 months. However, most of the information included must be no more than three months old when you start to market your property (an Energy Performance Certificate must be less than 12 months old).
Not without good reason, and if you sell your home without providing one, you can be fined £200. 'Good' reasons for not providing a HIP can include:
- You believe the person requesting it could not afford the property, e.g. people who don't have an ‘in principle’ mortgage
- The person is not really interested in buying the property, e.g. a journalist posing as a buyer to get a HIP of a celebrity’s home
- They are not a person who you would wish to sell the property to (but this doesn't mean you can unlawfully discriminate against someone)
Resources
- A list of compulsory items
- Registered HIPs providers
- Blank Property Information Questionnaire
- List of registered Domestic Energy Assessors
- Land Registry
- Sample HIP Index
Read our complete HIPs guide for those buying a home.
