Guide to Home Information Packs (HIPs)

Home information packs have demanded a lot of media attention over the past year (2007), and attracted a range of differing opinions as to their value.

Regardless of your views regarding their implementation, they are now compulsory for almost any property involved in a sale, from a 1 bedroomed house upwards, so understanding them and what they are all about is important.

Why are they necessary?

The reason for the introduction of these HIPs is to try and make property dealings more efficient and to heavily reduce the number of deals that fall through.

This is to be achieved by way of providing everyone involved in any sale with as much information as possible upfront, right from the start.

Buyers, who will be able to make more informed decisions, will therefore be less likely to encounter unforeseen issues that serve to delay the transaction or put them off completely.

Avoiding these delays in the sale process and withdrawals from sales will mean a lot less time and money will be wasted on all sides, essentially leaving both buyers and sellers better off in the long run.

How are they compiled?

The home information packs are to be arranged, compiled and paid for by the sellers, at an average cost of around £350 and so the benefit to the buyer, who is getting all the information neatly presented free of charge, is obvious.

However, the majority of sellers are also buyers anyway due to the very nature of the property market and so it should directly benefit everyone. And as outlined before, even if you are not selling your house to move into another one in the traditional sense, the HIP, although reasonably expensive, should lead to a more time efficient, cost effective transaction for your sale.

In a public sale the estate agent or sales solicitor should organise and provide the HIP on behalf of the seller. In the case of a private sale the seller will be expected to put the HIP together themselves.

There is no need for any qualification to compile your own HIP though it will, in most cases, work out more costly and time consuming. It involves arranging or carrying out the compulsory searches with professional validation, hiring a solicitor, a Domestic Energy Assessor and a Home Inspector if a Home Condition Report is required.

Where are they required?

Home information packs are currently only compulsory in England and Wales.