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.
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.
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:
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.
