Home Information Packs (HIPs)

A Home Information Pack (HIP) is compulsory for most homes on the market in England and Wales. But what is it, why do you need it, and what's in it?

What is a HIP and why do you need it?

A HIP is a set of documents designed to offer key information to anyone buying a property. If you are planning to sell or rent out your home, having a HIP is a legal requirement and you won't be able to market your property without it.

Additionally a HIP contains an Energy Performance Certificate (EPC) which gives the prospective purchaser or tenant details about how energy efficient the property is. Making a few changes, such as updating to a more efficient condensing boiler, can increase the homes rating and make it more attractive to potential buyers.

The HIP allows buyers to find out important information about a property at the early stages of the purchase, which means there is less chance of discovering any surprises further down the line. As a result, the HIP can help to reduce delays in the home buying process and more importantly, can eliminate unexpected expenses.

Savvy buyers can also use the HIP as a bargaining tool asking for a reduction in price for those properties that may need work to make them more energy efficient.

What's in a HIP?

A HIP is made up of a number of compulsory and optional elements, 

Compulsory elements include:

Freehold properties

• Home Information Pack Index
• The new Property Information Questionnaire (PIQ), from 6 April 09 
• Energy Performance Certificate (EPC) or Predicted Energy Assessment (PEA)
• Sustainability information (required for newly built homes)
• Sale statement
• Evidence of title
• Standard searches (local authority and drainage and water)

Leasehold properties

• All the compulsory documents above
• A copy of the lease

In addition to the above there are a number of optional documents which although you are not obligated to include them, may speed up the process and ensure things run smoothly. After all, who doesn't want a simple life?

These optional elements include:

• Home Condition Report
• Legal summary
• Home use/contents form
• Specialist searches (for example, a mining search in a mining area)

Additional Information:

As from April 6th 2009 there are a number of changes to the HIP which have been put into place by the Government to ensure that better information is available to you. These changes include:

• Ensuring the HIPS are available sooner
• Including a property information questionnaire (PIQ) which will include information regarding flood risk, gas and electricity safety, service charges, structural damage and parking arrangements.
• Ensuring that both buyers and sellers get a good service from professionals working in the industry.

For more information on the changes to the HIP, visit the Directgov website by clicking here.