HIPs  - Frequently Asked Questions

1. Sellers’ FAQs

·        When do I have to provide a HIP

·        How is a 4-bedroom property defined?

·        When will my 3/2/1 bedroom property require a HIP?

·        What do I do if my house was on the market on 1 August?

·        What goes into a HIP?

·        Who compiles HIPs?

·        Are HIPs required across the UK?

·        I’m selling my house privately – do I need a HIP?

·        How much will it cost?

·        Who pays for the pack?

1. What properties fall within the Government Scheme?
2. Who is responsible for providing the HIP
3. How long does the Pack Last for?
4. How soon can we start marketing a property?
5. What do we need to include in our sales details?
6. When do we have to send out a HIP?

1. Sellers’ FAQs 

When do I have to provide a HIP?

If you are marketing a property which falls within the scope of the scheme (currently those with 3 or more bedrooms) then the HIP must be commissioned before marketing can begin.

How is a 3 or 4 bedroom property defined?

A 3 or 4 bedroom property is defined as any property being marketed as having 3 or 4 bedrooms respectively.

When will my 2/1 bedroom property require a HIP?

The phased implementation of HIPs is to ensure there are enough Domestic Energy Assessors (DEAs) to produce the EPC, which form a compulsory part of the pack. The Government anticipates needing 3000 accredited DEAs to incorporate the remainder of the market. These numbers however, are subject to there being appropriate regional spread and the data collected from the implementation from 1 August onwards.

What do I do if my house was on the market before 1 August?

Properties that are genuinely on  the market before the commencement date (ie 1 August for sales of homes with 4 or more bedrooms and 10 September for 3 bedroom properties) will not need a HIP. This exemption will apply for as long as marketing continues.

What goes in a HIP? 

      The following compulsory documents must be included in a Home Information Pack:

• Home Information Pack Index
• Energy Performance Certificate (EPC)
• Sale Statement (basic details of transaction)
• Evidence of Title
• Standard searches
• Additional information for leasehold and commonhold properties where appropriate.

There are then further documents and information that you are authorised to include such as additional searches, guarantees etc.

Who compiles HIPs? 

Sellers can hire estate agents, solicitors, separate pack providers or do it themselves.

Are HIPs required across the UK? 

No – only England and Wales.

I’m selling my house privately – do I need a HIP? 

If you are marketing your own property, even if it’s just putting a ‘for sale’ sign in the window, you need a HIP. Sales where no marketing takes place (e.g. to a member of the family) won’t need a pack.

How much will it cost and who pays for the pack? 

The cost of a HIP will vary depending on the size and age of the property and whether it is freehold or leasehold. The only new cost, which is borne by the seller, is the EPC but this is small in relation to the overall cost of buying and selling a home. Although the seller has to pay for the EPC and searches on their own property, if they are also buying, they will not have to pay for these on their related purchase ( providing your lender accepts them if you require a mortgage) so the overall cost of buying and selling will be similar to now.

All buyers get the information free – so the HIP will be of particular benefit to first time buyers.

2. What properties fall within the Government Scheme? 

·        Required on all 4 bedroom homes from 1 August and all those with 3 bedrooms from 10    September 2007.

·        Not required (yet) for new build properties that comply with the latest building regulations. The developer should be able to advise whether or not this is the case.).

·        Not required for:

-   Properties where there is no marketing (for example, inter-family sales)

-      Property actively marketed from 1 June 2007until the date a HIP is first required by law (1 August for 4 bed properties; 10 September for 3 beds) and remaining on the market. Where the property is “taken off” the market as a result of an offer being accepted, it can continue to be marketed without a pack if it is placed back on the market within 28 days of the sale falling through.   

-        Non-residential property (subject to exclusions)

-   Seasonal and holiday accommodation

-   Mixed sales (for example, shop with flat)

-   Dual use properties such as work/live units

-   Sales of portfolios of properties

-   Unsafe properties

-   Properties to be demolished and redeveloped 

The “Responsible” person is the person marketing the property i.e. in most cases the agent. If the vendor sells privately, then it is his responsibility.

While the property is on the market, there is no need to update the HIP . If the sale of the property stops and starts again, you would normally be required to assemble a new pack and to update those documents that are then out of date according to the requirements of the Home Information Pack Regulations . (Generally this means they have to be no older than 3 months from the date of first marketing. However, the seller can carry on using the same HIP without the need to update any of the documents in the following circumstances:

• Where marketing stopped because the seller accepted an offer and wants to restart marketing because the sale fell through, provided that remarketing starts within one year of the date when marketing first began or, if later, within 28 days of the sale falling through or
• Where marketing has stopped for any other reason, the seller may remarket the property with the same pack provided that remarketing starts within one year of the date when marketing first began.

5. How soon can we start marketing the property? 

A property can be marketed without a HIP in place provided that the “required” documents ( index, EPC, sale statement, evidence of title and standard searches) have been commissioned. If we know that these items have been ordered and any requisite fee paid, then we can begin marketing. In practice this means that we need to have in our possession confirmation in writing (for which purposes can be an e-mail) from the Seller’s solicitors  that all the “Required” documents have been obtained or requested and any fees paid and  an undertaking to take all reasonable  steps to procure what is outstanding and to forward a copy of the EPC immediately it is received and the HIP as soon as possible thereafter.

6. What do we need to include in our sales details? 

Sales details must include the energy ratings from the EPC. Where marketing begins before the EPC is received the details may be sent out without the ratings but must be amended to include the energy rating as soon as the EPC is received. From that time on, all details sent out must bear the ratings.

7. When do we have to provide a HIP? 

We have to provide a HIP to anyone who requests one except where:

• It is reasonable to believe that the person requesting the copy could not afford to buy the property or
• It is believed the person making the request is not really interested in buying this particular property or one like it or
• Where the potential buyer is not a person to whom the seller would wish to sell the property (e.g. because they are in a chain, need a mortgage etc.)

If none of the above exceptions applies then the copy HIP must be provided It can be supplied in electronic form it the person concerned is willing to accept it in that format. If a paper copy is requested this must be supplied within 14 days .A reasonable charge may be made to cover the cost photocopying the HIP.