HIP FAQs

Peter Ambrose, author of Lawpack's Self-Help Home Information Pack Kit, tells you all you need to know about what's in a HIP and where to get one.

The government has recently introduced the final stage of Home Information Packs (HIPs) in England and Wales. Since 14 December, if you want to sell your property, whatever its size, you must commission a HIP before you can market it.

HIPs have been introduced to speed up the home buying and selling process, as well as highlight the energy efficiency of our homes. They contain much of the legal documentation that is currently obtained by solicitors, as well as an Energy Performance Certificate which shows how well you use energy in your home.

Although HIPs take only about a couple of weeks to put together, if you want to market your home quickly, this delay could potentially mean lost buyers. Therefore, until June 2008, you can market your property even if the HIP hasn't been completed, as long as you ensure that the energy ratings for your home are included on the property particulars. 

Most homes that have one or two bedrooms are leasehold flats and previously the complete documentation about the property had to be included in a HIP. This meant obtaining details such as service charges, management accounts, ground rent, details of recent works being carried out, as well as the lease. However, this requirement has been relaxed and now you only need to include the lease within a HIP, which will make the process of putting a HIP together far quicker and more cost effective than before.

It is first time buyers who will benefit the most from these changes, as it is now the seller who has to pay for some of the legal costs instead of them. 

HIP FAQs

1. The property I am selling is rented to a tenant. Do I need a HIP?
   
   If the tenant is not moving out, then you will not need a HIP.
   
   
2. When should I organise a HIP?
   
   As near to the time when you plan to start marketing the property as possible, to avoid the searches going 'out of date' (see question 4 below).
   
   
3. How long is a HIP valid for?
   
   Although there are no time limits on the validity of a HIP, solicitors may need to update the local authority searches after approximately three to six months.
   
   
4. How much does a HIP usually cost?
   
   A basic HIP, that is compliant with the regulations and uses personal local authority searches, will typically cost between £300 and £350 plus VAT. However, for a more useful one, with authorised local authority searches, expect to pay around £450 to £500.
   
   Lawpack's Self-Help Home Information Pack Kit explains how you can make a HIP, as well as how you can make substantial savings by either project managing your own HIP or using your estate agent, solicitor or HIP provider to your full advantage.
   
   
5. What documents have to be included in a HIP?
   
   Although there is huge scope for documents to be included in a HIP, at the absolute minimum, you need the following:
   
   • Index
   • Sale Statement
   • Title documentation
   • Local authority and drainage searches
   • Energy Performance Certificate
   • Copy of the lease (if appropriate)
     
     
6. What is the Energy Performance Certificate?
   
   The Certificate gives a rating for the building, showing its energy efficiency and its environmental impact on a scale from A to G. The most efficient homes, which should have the lowest fuel bills, are in band A. It also includes recommended ways to improve the building's energy performance.
   
   The Department of Communities and Local Government (CLG) and the Energy Savings Trust (EST) produces a short guide for householders in England and Wales on ways to cut down on energy bills and the financial support available for implementing energy efficiency measures in their homes. It also includes the support available for acting on recommendations in an Energy Performance Certificate (EPC). Copies of the guide can be ordered free by emailing communities@twoten.com and quoting product code: EST/HIP/08.
   
   
7. Who can provide a HIP?
   
   There are many companies on the market offering reduced priced HIPs, or alternatively, you can contact your solicitor to obtain the documentation for you.