Home Information Pack Tips

Home Information Pack FAQs

What’s the reason for introducing Home Information Packs (HIPs)?
What's in the Home Information Pack?
What exactly is the Energy Performance Certificate or EPC?
When will HIPs become compulsory?
How long will the complete Home Information Pack be valid for?
Do you have to wait until all of the 'required' components of the Home Information Pack are available before a property can be marketed?
Are there any instances where I don‘t require a HIP?
Who will compile the HIP?
How will it be delivered?
If I pay for a HIP up front, then decide to change Estate Agents, can I use the HIP I already have or do I have to get another one done?
Should I let my estate agent add the cost of a HIP as a percentage of his commission?

What’s the reason for introducing Home Information Packs (HIPs)?
The thinking behind HIPs was originally to get all the documentation that you need in order to exchange on a property in place up front so as to speed up the sales process. However, the main element of the HIP is the Energy Performance Certificate. The EPC will give prospective purchasers an easy to read guide to the likely energy costs of occupying the property in a similar way that current 'white goods' have an efficiency label. The certificate also lists ways in which a new occupier might improve their home’s efficiency.
The original HIP proposal was to include a survey (or Home Condition Report) which meant that the buyer knew before they made an offer on the property what state it was in and if there were any problems. However, in 2006 the Government decided to drop this element of the HIP for the initial launch, although it is thought that this may well end up being included at some later stage.

What's in the Home Information Pack?
There are two parts to a HIP: the required components and the authorised components. The required components are compulsory; the authorised components can be included at the seller's discretion but add value to prospective buyers in terms of providing additional reassurance. Required components are:
An index (i.e. a list of the contents of the Pack)
An Energy Performance Certificate or a Predicted Energy Assessment)
Terms of sale
Evidence of title & title plan or evidence of a Search of the Index Map (SIM)
Standard searches ( Local Enquires & Drainage and Water enquiries)
Where appropriate, common hold/leasehold information
Additionally, for leasehold properties:
A copy of the lease
Most recent service charge accounts and receipts
Building insurance policy details and payment receipts
Regulations made by the landlord or management company
Memorandum and articles of the landlord or management company
There are a number of items in the Home Information Pack that are optional:
Home Condition Report
Legal summary
Home use/contents forms
Other documents such as guarantees and additional searches.

What exactly is the Energy Performance Certificate or EPC?
An Energy Performance Certificate (or EPC) is generated by a Domestic Energy Assessor (who are trained professionals and members of the accredited schemes run by the Government). A Domestic Energy Assessor will visit your property and carry out a series of checks, which will measure the energy efficiency of your property using a piece of specifically designed software. He or she will then issue a certificate, showing the 'energy rating' for the property (on a scale of A to G, A meaning it is very efficient, G meaning it is very inefficient) along with an Environmental Impact Rating, which gives an indication of the property's carbon-dioxide emissions. The EPC will also provide some guidance on how the energy efficiency of the property could be improved (for example by installing cavity wall insulation or loft insulation, or by turning off household appliances when not in use). The Energy Performance Certificate must be included in the HIP, and certain graphs from the report must be included in the marketing particulars of the property (for example, the estate agent's details).

When will HIPs become compulsory?
From the 14th December, 2007, all residential properties require a Home Information Pack.

How long will the complete Home Information Pack be valid for?
The Home Information Pack is valid whilst the home is continuously marketed for sale. Regulations allow for a period where the property might be taken off the market whilst, for example it is under offer or to allow a seller to change agents.

Do you have to wait until all of the 'required' components of the Home Information Pack are available before a property can be marketed?
No, up to 31st May 2008 you will be allowed to market your property as soon as you have commissioned your HIP- rather than waiting until you receive it.

Are there any instances where I don’t require a HIP?
There are a few exceptions as follows:
Non-residential premises
Mixed commercial and residential premises
Sales of seasonal and holiday accommodation
Sales of tenanted properties
Private sales where the property is not marketed
Unsafe (uninhabitable) properties and properties for demolition
Sales of portfolios of properties
New homes built to Part L of the 2006 Building Regulations will be excluded from the HIP duties until April 2008
back to topWho will order the HIP?
We see a number of potential customers, ranging from estate agents, solicitors, developers and IFAs, through to corporate chains, introducers and Lenders. As the market settles down and people become more familiar with HIPs, the sellers themselves may increasingly order the HIP direct.

Who will compile the HIP?
Optimum Energy Solutions will compile the HIP, via a web based browser system that will enable local production and delivery.

How will it be delivered?
Flexible solutions to best suit the needs of the particular client are offered. We will not prescribe the delivery route but will work with you to offer the most appropriate service for you.

If I pay for a HIP up front, then decide to change Estate Agents, can I use the HIP I already have or do I have to get another one done?
Yes, you can and no, you don't need another one! In theory, you can get your own HIP done before you approach any estate agent, and, providing all the information required is there, they will have to use it. So, if you decide to part ways with your agent and instruct another one, don't worry, your HIP is transferable.

Should I let my estate agent add the cost of a HIP as a percentage of his commission?
It would be a very expensive mistake if you did. Even if your estate agent offers to take of the HIP for ½%, on a sale that could be in the hundreds of thousands, that works out to be an incredibly expensive HIP!

We'd also urge some caution about agents who may try to lure you into instructing them by offering 'free' HIPs (check the small print), or those companies offering extremely cheap, instant, online HIPs. The Home Information Pack is a legal document, and as such, can only be compiled by qualified, accredited professionals.