Home Information Packs - HIPS

Home Information Packs - HIPS: An Overview Of The Regulations

In England and Wales, under the provisions of the Housing Act 2004, a HIPS Home Information Pack will have to be provided before a property can be put on sale. The pack should contain a set of documents related to the property. As their justification for introducing the scheme, the Government cited that this will reduce the number of abortive sales and the buyer as well as seller will benefit from clear documentation. Though the introduction of HIPs has been a subject to delays and reduced requirements, it was made mandatory for homes with four or more bedrooms on 1st August, 2007. From 10th September 2007, the HIPS Home Information Packs have been extended to three bed roomed properties too.

Contents Of The HIPS Pack

The essential contents of the HIPS Home Information Packs are as follows:-
These should not be more than three months old when the property is first put on market:

• Terms of sale
• Evidence of Title
• Copies of warrantees and guarantees for new buildings
• Guarantees for any work carried out on the property
• Copies of any planning, building regulations consents and approvals
• Local search replies
• A home Condition Report
• An Energy performance certificate

If the property is on lease-hold, then following additional documents are needed:

• Copy of the lease
• Building insurance policy details and payments
• Recent service charge accounts and receipts
• Memorandum and articles, contact details of the landlord or management company

Some Important Contents And Their Meaning

Let us now discuss about some of the contents of the HIPS Home Information packs in detail:

• Home Condition report: This report will cover the general condition of the property regarding its age, location, character and any defects that require action. The Government has developed this completely new format for home condition report in association with organizations like the Royal Institute of Chartered Surveyors.
• Energy Performance certificate: To improve the energy performance of buildings, the Government is committed to comply with EU directive 2002/91/EC. The certificate is designed to give the prospective buyer, an easy guide to the likely energy costs of occupying the property. This will also contain practical suggestions about saving energy while using the property and reducing harmful emissions.

Cost Of HIPS

The cost of HIPS Home Information Packs is estimated to be between 300 to 600 pounds for majority of properties in England and Wales. For larger or more complex properties, the cost could be much higher. Some estate agents offer this pack free with their services. However, it is advisable for the homeowners to be careful and vigilant while signing these documents. The Law society recommends that one should take help of the individual HIP providers for these home improvement packs.

The enforcement of the HIPS Home Information Packs is to be carried out by the local authority Trading Standards Departments. Failure to provide the pack or an incomplete pack could result in a fine of 200 pounds. The Home Condition report is yet not made mandatory. From August 1st, 2007, the home and estate agents who fail to comply with the regulations regarding the HIPS Home Information packs could face a ban from estate agency work.