HOME INFORMATION PACK (HIP)

As many people will know the government has for some years expressed the need to speed up the home buying process. They therefore propose to introduce Home Information Packs (HIPs) to reform the home buying and selling process.

On the 17th November the Office of the Deputy Prime Minister announced that Home Information Packs (HIPs) would become mandatory from 1st June 2007.

So what does this mean for all of us?  As from 1st June, 2007 the seller of residential property will be required to provide a Home Information Pack before marketing a property for sale and to make it available to prospective buyers within 14 days of request.

The HIP will contain a Home Condition Report including an Energy Efficiency Report and the legal documentation such as Terms of Sale, Evidence of Title, Searches, Planning Consents, Seller’s Property Information, Warranties and Guarantees.  The most substantial part of the HIP is the Home Condition Report (HCR)which is a type of survey providing impartial and reliable information on the condition and energy efficiency of the property.  The HCR is broadly similar to the RICS Homebuyer Survey & Valuation Report although will be an independent assessment written with neither the seller or buyer in mind.

The report lists key defects and grades them according to seriousness.  The reports will be made accessible to lenders, conveyancers, estate agents, brokers, buyers and sellers.  The pack is designed to prevent sales falling through due to delays with late information although there will of course be a cost to the sellers of the property which is likely to be in the region of £600 to £800.  Nonetheless, the government are committed to bringing in the legislation and Arnolds are committed to providing a service to buyers and sellers of residential property. 
 

The precise format of HIPs is still not clear, nor the methods that they will be delivered to potential purchaser although we will continue to be at the forefront of the development of this service and in the meantime would be glad to give our views to anyone considering selling property in the future.  We will also be in the position to provide advice for sellers on works or actions that may be required to their home before having a Home Condition Report undertaken or indeed the remedy for any issues that are highlighted by the report. 

Arnolds are therefore committed to the changes and will be ready for the introduction of the seller’s pack.  We will be able to provide a Home Condition Report service and the provision of HIPs to individuals, fellow professionals and estate agents throughout the county. 

Charlie Penrose
November 2005

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