HIPs (Home Information Packs)

21st May 2010

The new Conservative and Liberal Democrat coalition government has suspended controversial Home Information Packs (Hips) from Friday 21st May 2010.

Communities Secretary Eric Pickles and Housing Minister Grant Shapps suspended the packs with immediate effect pending primary legislation to permanently abolish them. The Conservatives and Liberal Democrats pledged in their coalition agreement to get rid of the packs, which were introduced by Labour in 2007. The cost of a Hip was in the region of £299 but in some cases was as high as £499 plus V.A.T.

Shapps called the packs “pointless red-tape” that was “strangling the housing market.” Pickles said: “The expensive and unnecessary Home Information Pack has increased the cost and hassle of selling homes and is stifling a fragile housing market. “That’s why I am taking emergency action to suspend the HIP, bringing down the cost of selling a home and removing unnecessary regulation from the home buying process.”

An Energy Performance Certificate (EPC) is still required but must now only be 'commissioned' rather than 'completed' before marketing of a property commences. The cost of an EPC is in the region of £50 plus V.A.T.

8th December 2008 - Hip regulation changes

  • The present ‘temporary’ leasehold information provision will be made permanent from 1 January 2009.
  • From 6 April 2009 HIPs must include a Property Information Questionnaire (PIQ). Introduction of a PIQ will provide basic information about a property which is similar to the existing Seller’s Property Information Form currently completed after a sale has been agreed.
  • The PIQ will also include additional leasehold information from 6 April 2009.
  • First day marketing will end on 5 April 2009. Estate Agents will still have the 28 days provision for certain information, such as searches, that takes longer to obtain. This effectively means the removal of temporary first day marketing from 6 April 2009 and a basic' HIP will have to be in place before a property is marketed. This will not prevent agents advising clients about properties they expect to be coming onto the market.
  • The regulations do not impose a ‘drop dead’ date after which all properties on the market require a HIP so those properties without a HIP because they came onto the market before the HIP regulations took effect still do not have to have a HIP
  • The use of insurance in personal searches will end from 6 April 2009. It is worth noting at this stage that the end of insurance in personal searches will effectively allow the Local Authorities to charge a higher price for their searches and this will not be uniform throughout the country. So there could be different price HIPs depending which Local Authority covers the property.

1st October 2008

Home Information Packs (HIPs) were introduced last year for every property marketed for sale. Some properties are exempt and remain exempt from the Home Information Pack Regulations 2007 because they either came on to the market before the introduction of Hips or fall into one of the exemption categories.

However, The Energy Performance of Buildings Directive (EPBD) overrides the Home Information Pack Regulations 2007 and this means that although a property remains exempt from the HIP regulations it does require an Energy Performance Certificate (EPC) from 1st October 2008. The EPC currently forms one of the components of the HIP but will be required as a standalone document if a property continues to be marketed from 1st October.

Latest news - Issued on 14 December 2007

Home Information Packs are now required for ALL properties. This legal requirement came in force on 14th December 2007. The Pack includes an Energy Performance Certificate, containing advice on how to cut carbon emmissions and fuel bills. Also included are legal documents such as a sale statement, searches and evidence of title.

This means that HIPs have been rolled out in the following three stages:

  • HIPs and EPCs were introduced on 1st August 2007 for four bedroom houses and larger only.
  • HIPs and EPCs regulations were extended on 10st September 2007 for three bedroom houses.
  • HIPs and EPCs are now required for ALL properties, as of 14th December 2007.

Until 1st June 2008, properties can be marketed as soon as a HIP has been commissioned - so sellers will not have to wait until the HIP is completed before they can sell their home. EPCs can be up to 12 months old when they are included in a HIP.

There are many varying views on the future of Hips but we are in the fortunate position at Christopher Pallet in that we have our own Hip's staff and Domestic Energy Assessors and hence the expertise to produce a HIP and an EPC for any property of any size very quickly. We will be keeping a close eye on the legislation for any further changes. If you would like any information on HIPs or EPCs please telephone 01844 290440.