Tips for HIPS

Home Information Packs (HIPs) became mandatory on August 1st. Menasche Scharf explains what they mean to vendors. 



 

Vendors advertising properties for sale with four or more bedrooms must now commission a HIP to accompany their property to the market. Come September 10^th  the same regulations will apply to three bedroom homes in England and Wales.  If you are planning on selling your property soon you'll need to get familiar with HIPs - and importantly, how improving the safety of your property for a visit by the Home Inspector can help you make it more attractive to buyers. 

It is the seller's responsibility to arrange a HIP for their property when they advertise it for sale. In practice, vendors can enlist the services of their estate agent to make the arrangements on their behalf. Alternatively, the property vendor can order their HIP through a specialist HIP provider, or through their solicitor. 

The idea behind HIPs is to make the process of buying and selling property easier and more transparent. With this in mind the government has outlined a number of compulsory and optional documents that are to be contained in the Home Information Pack. 

 

Briefly these are… 

 

Statement of Sale 

Evidence of Title including Title Plan 

Property and Land Searches 

Lease Documentation (if leasehold) 

Energy Performance Certificate (EPC) 

 

Optional documents are… 

 

Home Condition Report 

Guarantees and Warranties 

Fixtures and Fittings List 

 

The HIP provider will compile all relevant information as required and requested into the Home Information Pack. It is they who will liaise with the solicitor or conveyancer for search information, and it is they who will organise a qualified Home Inspector to visit your property to perform an Energy Assessment and to produce the Home Condition Report if needed. 

The Energy Performance Certificate is a central document in the HIP. It is an energy audit of your property to assess its energy efficiency, and to determine how cost effective the property is to run. The EPC will grade your property on a sliding scale between band 'A' and band 'G'. Band 'A' ratings denote high-energy efficiency and low running costs. Band 'G' ratings show the property to be poor on energy efficiency and costly to run. 

 

The Home Condition Report is much more familiar. It is a physical inspection of the property - a form of basic survey if you will. This report is included in the HIP on a voluntary basis by the seller and will highlight any health and safety concerns at the property. 

As the EPC and Home Condition Report rely on the visit of a Home Inspector to the property, vendors have an opportunity to make some improvements to the property ahead the visit - improvements that could make the property safer, more energy efficient and thus more attractive to potential buyers from the start. 

On the energy front for example, you could look at the safety aspects of your boiler. An old boiler, especially if not regularly serviced, could be a threat to your health. Parts might have corroded leaving the boiler dangerous and certainly inefficient to run. By replacing the boiler with a new high-efficiency condensing boiler, you'll not only make your property safer but you'll get full marks from the Home Inspector too. 

If you've opted for the Home Condition Report have a think about health and safety issues at your property. Are slates and tiles loose on your roof? Is the chimney stack in need of some attention? Is your guttering secure, or do you have damp areas on internal walls and ceilings? If you can identify these potential safety hazards and take action to correct them, that Home Condition Report in your HIP will have buyers falling over themselves to buy your property!