Confused about HIPs? Here's a quick summary...
When first proposed, the aim of the HIP was to make the homebuying process in England and Wales more efficient and cut the time taken from offer to exchange.
Commissioned by the seller before the property was put on the market, the pack was to include a single survey or ‘Home Condition Report’ (to save potential purchasers paying for a costly survey on a home they my not even buy), an Energy Performance Certificate (something all homes for sale in Europe will need by 2009), along with other essential documentation potential homebuyers need to make an informed decision on whether or not they wanted to proceed with the purchase.
However, when it was clear that not enough trained surveyors would be available to meet demand, the single survey or Home Condition Report – one of the most useful elements of the original pack – was withdrawn as a compulsory document. Now it’s hoped that the optional Home Condition Report will be included by sellers as a means of speeding up the process and to act as a sales incentive.
Shortly before the much-hyped HIP was due to be introduced on 1st June 2007, the government announced that the launch was to be delayed by two months, and then implemented on a phased basis starting with larger properties. But now the scheme has rolled out to all homes with 3 bedroom or more. And for an initial period, packs don’t actually have to be complete before the property can be marketed.
Confused? To help clarify the situation, here’s a quick summary…
- From 10th September 2007, HIPs will be required for all properties being marketed for sale in England and Wales with three bedrooms or more.
- Smaller properties will be phased in as soon as sufficient energy assessors are fully qualified – probably by the end of the year.
- Until the end 2007, properties can be marketed as soon as the seller has proof that the HIP has been commissioned.
- Energy Performance Certificates must be available before completion.
- As a temporary measure, Energy Performance Certificates can be up to 12 months old when a property is put up for sale.
- HIPs are not required in Northern Ireland or Republic of Ireland.
- Scotland is due to introduce its own Purchaser’s Information Pack (PIP) in early 2008.
Read more on Home Information Packs.
As featured on re:home - the home of homemovers...
