The government last year introduced the Home Information Pack as a requirement for anyone selling a house. The scheme is designed to make buying a home less fraught with uncertainty, but what is a HIP, what should be in it and how does the process work?
** 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 designed to provide you with information on a property you are interested in buying.
By law, a HIP must be made available, usually via an estate agent before anyone can put their home on the market. The idea is that making certain information freely available to potential buyers will reduce delays and expense at the end of the house buying process, where issues like surveys have often caused problems in the past.
Are all property sales covered by HIPs?
It is a legal requirement to have a HIP in place before selling most types of property, 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
When should I ask to see a HIP?
A HIP should be ready and available on the first day that any affected property is marketed. You should ask to see a HIP before you view a property.
How quickly should a HIP be provided?
By law, a HIP should be provided to you within 14 days of your request. You do not need to have expressed a firm interest in the property or made an offer before you ask for a HIP.
What if the seller refuses to provide a HIP?
There are circumstances in which a seller may legally refuse to provide a HIP. If the seller believes:
- You could not afford the property, e.g. you don't have an 'in principle' mortgage
- You are not really interested in buying the property, e.g. you are a journalist posing as a buyer to get a HIP of a celebrity’s home
- You are not someone the seller would wish to sell the property to (but this doesn't mean they can unlawfully discriminate against you)
If you believe that you are being denied a HIP unlawfully, contact your local authority trading standards officers. The seller could be liable to a fixed penalty of £200.
How much does a HIP cost?
It is illegal for the seller to charge you for a copy of a HIP, aside from reasonable copying and postage costs.
What does a HIP look like?
A HIP is simply a collection of documents. Their design will vary depending on who put the HIP together.
What should be included in a HIP?
It is compulsory for certain information to be included in a HIP, so do check that everything is in order. This includes a HIP Index, a Property Information Questionnaire (from April 2009), an Energy Performance Certificate (which sets out how energy efficient the property is), a sale statement, evidence of title (to prove the seller owns the property) and standard searches (local authority, drainage and water).
There are also a range of documents which can be included on a voluntary basis, such as a Home Condition Report and specialist searches.
How do I know if a HIP is valid?
A HIP is valid for 12 months. However, most of the information included must be no more than three months old when the seller starts to market the property (an Energy Performance Certificate must be less than 12 months old). If you suspect that you have been provided with an out of date HIP, ask for clarification from the vendor. If you are still not satisfied, contact trading standards.
What should I do with a HIP, once I have received it?
First and foremost, read it. The contents will help you to get a feel for the property and could highlight any issues that might slow down or complicate a purchase (for instance issues related to drainage and flooding). It is also important that you give a copy of the HIP to your legal representative. The information contained within it, coupled with their legal expertise, could help to save money and time should you decide to purchase the property.
