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Home information packs
The government has announced a delay to the introduction of Home Information Packs (Hips) in England and Wales.
I want to sell my house and was told that I will need a Home Information Pack. What are they? The packs are to contain information that will be useful to any potential buyer.
Copies of title deeds, any recent planning permission or building consent given on the property, a local area search and an energy performance certificate will all be in the pack.
Under the rules, everyone who puts their property up for sale in England and Wales will eventually be legally obliged to produce a Hip. Failure to produce a Hip can lead to a substantial fine.
Do I still need one?
Not quite yet.
Hips were meant to become compulsory for all houses put on the market from 1 June onwards.
But Communities and Local Government Secretary Ruth Kelly has now announced that the introduction has been pushed back.
Now, from 1 August only four-bedroom homes will have to have a Hip. |
The reason, Ms Kelly told the House of Commons, was that there needed to be more assessors in place to produce enough energy performance certificates - as many as 2,000 more than are currently accredited.
Ultimately, once more assessors are trained, the requirement to have a Hip will be extended to smaller properties.
Another key change announced by the government is that house sellers will not have to a Hip in place before putting their property up for sale. They will be able to start marketing and then obtain a Hip.
Energy performance certificates - what are they?
The idea of the certificate is that, at a glance, would-be buyers will be able to see the property's energy efficiency - a bit like when they buy a fridge.
The homeowner will also be presented with some tips on how the energy efficiency of their home can be improved.
Energy performance certificates kill two birds with one stone - providing information for homebuyers and ensuring the UK complies with an EU directive which comes into force in 2009.
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Why are the packs being introduced?
Hips have been in the offing for a decade.
The Labour government went into the 1997 general election promising to introduce Hips, with the express intention of reducing the number of property sales which fall through.
The idea is simple: the more information that is presented to the buyer upfront, the slimmer the chance of a nasty surprise scuppering the sale further down the line.
I remember that originally Hips were meant to contain a structural survey. Has that plan been dropped?
Yes.
Last year the government announced that Hips would, for the time being, not have to include a structural survey.
How will I organise getting a pack?
Through your estate agent.
I am buying a property. How much store should I set on the information in the pack?
The information will be useful but it may soon be out of date. Your solicitor may well advise that you get your own searches done.
Your mortgage provider may also want fresh property searches. |
