Home Information Packs (HIPs) became mandatory on August 1, 2007. 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, 2007 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.
HIPs - The Facts
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 liase 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.
Energy Performance Certificates and Home Condition Report
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.
EPCs have been a long time in their arrival. Back in 1997, at the tabling of the Kyoto Protocol in Japan, a framework agreement was put in place to reduce greenhouse gas emissions, including Co2 - these are seen as the main contributing factors to climate change. Member states of the European Union signed up to the agreement, and, in an effort to meet reduction targets, have focused EU directives at lowering energy consumption in buildings. In the UK it is estimated that around 50% of all the country's energy is consumed by lighting, heating and electrical appliances used in our homes and at work. The government and its advisors believe that the introduction of more energy-efficient products into the home and workplace, and improvements in regulating ambient temperature in living spaces so less energy is used, will help the UK meet its carbon emission targets.
Enter then the EPC. It is hoped that by making an EPC a mandatory part of the Home Information Pack that home buyers and sellers will have a greater awareness of their energy consumption, and thus their personal contribution to climate change. On the certificate is an energy efficiency rating and a environmental impact rating. Both will have the current rating of the property and a 'potential' rating. The 'potential' is what could be achieved at the property should the recommendations noted on the EPC be implemented.
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.
Improving Safety for a more attractive HIP
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!
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