Home Information Pack (HIP) Questions and Answers

JMS Solicitors are here to answer all your queries relating the recently introduced Home Information Packs (HIP) and Energy Performance Certificate (EPC).

What is a Home Information Pack?
What is in the Home Information Pack?
When do I need a Home Information Pack?
When do I not need a Home Information Pack?

What is a Home Information Pack?

The Home Information Pack (the HIP) is a set of documents put together when a property is put on the market for sale. The Pack includes information about the property itself and its energy efficiency.

The aim of the Pack is to reduce stress in the conveyancing process, by making information available to prospective buyers from the outset, so there are no nasty surprises as the sale proceeds.

What is in the Home Information Pack?

1. Compulsory Documents

1. A Home Information Pack Index
2. The Energy Performance Certificate (EPC)

When you put your house on the market it is now law that the Energy Performance Certificate has been ordered.

The EPC shows you not only the current energy rating of your property, but also cost effective ways in which that rating can be improved. A higher rating means that the heating bills will be lower, and carbon emissions will also be lower. Example Energy Performance Certificate

There is an EU Directive that requires our Government to provide the EU with statistics as to how energy efficient we are as a nation. The UK has been directed to reduce carbon emissions or face substantial fines.

By including the EPC in the Home Information Pack, the Government can compile their statistics whilst actively encouraging home buyers/sellers to improve the energy rating of their homes.

At JMS Solicitors we have our own team of in-house Energy Assessors who can carry out an Energy Assessment on your home, often on a same-day/next day basis. We can also arrange appointments for evenings (subject to daylight hours!) and weekends.

The appointment lasts between 30 and 60 minutes, depending on the size of the property. Our assessor will measure the property, and will need access to your boiler and roof space (where possible). It is a visual inspection and will not cause any damage or require you to move furniture/lift carpets etc.

3. Sale Statement – simply detailing the terms on which the property is offered for sale (e.g. freehold or leasehold, who is selling and is vacant possession being given). Sample Sale Statement
4. Property Information Questionnaire (PIQ) completed by the seller. It provides a helpful checklist of simple information about a property buyers need to know before making any decision on the property.
5. Evidence of Title (proof that the seller owns the property and that it is theirs to sell)
6. Standard Searches: the only ones that are legally required are the local search and the drainage and water search.
7. Where a property is Leasehold, a copy of the Lease is required
8. Where a property is commonhold (some flats/apartments), certain Commonhold Information will be required.
9. For newly built homes Sustainability Information. The Code for Sustainable Homes measures the environmental impact of a new home against nine categories. The code requirements only apply to new homes where a local council has received a building notice, initial notice or full plans application after 1 May 2008. Newly built homes must have either: a certificate (or interim certificate) showing the sustainability of the home assessed against the standards under the Code for Sustainable Homes OR a nil-rated certificate where the property has not been assessed against the Code

2. Optional Documents

1. A Home Condition Report – this is a much more in-depth survey carried out by Home Inspectors. It includes the EPC but also goes into some depth as to the condition of the property, much more like a survey. Whilst this can be useful to show buyers that the property is in good condition, or to let them know from the outset that certain work needs to be done, it is not usually relied upon by mortgage lenders, who would expect the buyer to pay for a full survey if there were any doubts as to the property’s condition.

   JMS Solicitors have their own Home Inspector available to carry out this survey for you, if you decide you would like to include a Home Condition Report in your HIP.

2. A Legal Summary prepared by the Solicitors
3. Any Guarantees and Warranties for the property.
4. Other Searches such as a mining search – required in certain geographic areas.
5. A Home Use Form
6. A Home Contents Form – a tick list of any contents that will be left in the property. This is not mandatory because it is difficult for any seller to decide what fixtures and fittings are to be left in the property until they have a buyer i) how much is the buyer paying? ii) what fixtures will be in the seller’s new property?

When do I need a Home Information Pack (HIP)?

Home Information Packs are mandatory on all residential properties being marketed for sale

Home Information Packs were rolled out over a period of time, starting with the bigger properties. They became mandatory for all properties from 14th December 2007.

All properties therefore now need a HIP unless they fall into one of the exempt categories

When do I not need a Home Information Pack?

If a property is not being placed on the open market (e.g. sale between friends or ‘right to buy’ applications from the local authority)

Business Use – Properties that are classed as or have planning consent to be used as a business –so long as that business use continues after the sale.

If a sale is of a shop with a flat above or a doctor’s surgery with living space (i.e. mixed business and residential use).

Where a seller is selling several properties as one portfolio.

Properties that have been classified as unfit for habitation by the planning authority, and that will remain so after completion.

Any property that has a demolition order on it.

Properties that are limited by law as holiday accommodation or occupancy for less than 11 months per year

Properties that are not being sold as completely vacant,e.g. with a sitting tenant

The above list is not exhaustive but includes the main situations where a HIP is not required. The Government are tightening up the HIP legislation, and we will update this list when we hear of any changes.

It is also worth checking www.homeinformationpacks.gov.uk for the latest news from the Government regarding HIPS.