A Home Information Pack (HIP) is a set of documents that provides important information about a property, such as energy efficiency, ownership and boundary issues. They are a legal requirement for all residential properties going on the market, with a number of exceptions such as those being let, smallholdings with land, holiday accommodation and mixed used properties.
HIPs provide potential buyers with important information at the outset, enabling them to make a more informed decision, and make the process of buying and selling property quicker and more efficient. A pack will comprise mandatory documents as well as optional ones as listed below. The mandatory documents include information that was not traditionally available to a potential buyer until after an offer was accepted. We firmly believe that including as much of the optional documentation as possible is an asset to the property and advantageous to it's successful sale.
Including previous building surveys in your HIP pack is also advantageous as it provides buyers with additional peace of mind - as per a full service history for a car - and is likely to result in a higher price being achieved. We have seen homes subject to previous reports by us increase in value by as much as 10% (e.g. £100,000 on one million pound home).
Home Information Packs have limited credibility if the information is not supplied by a qualified Law Society firm of solicitors. HIPs and searches by Central Surveying are made with the compliance of RICS and SAVA professionals.
Obtaining an energy audit and an Energy Performance Certificate (EPC) is now compulsory prior to marketing or leasing all property excluding places of worship. Site inspection and a surveyor's verification or preparation of correct site and floor plans prior to sale may also prevent delays or disputes arising during the legal process.
EPCs tell you how energy-efficient a home is on a scale of A-G, with the most efficient homes - ones with the lowest fuel bills - in band A. It also rates the impact the home has on the environment on a scale of A-G, with better-rated homes emitting lower levels of carbon dioxide. The average property in the UK is in bands D-E for both ratings.
Most sellers of newly built homes will have to provide a predicted assessment of the energy efficiency of the property, and a full Energy Performance Certificate must be provided to the buyer when the home is completed.
As of January 2009, all commercial buildings that are being sold or let (except those of less than 50 sq m) are also required to have an energy audit and issue an EPC. It must be supplied to prospective buyers and tenants as soon as any written information about the building is provided or when a viewing is conducted, and in any event before a contract to sell or let is entered into. An EPC is not required on renewal or extension of a lease, but is needed if a tenant assigns the lease or sublets all or part of their premises.
EPCs also include recommendations on ways to improve the building's energy efficiency in order to save money and help the environment in compliance with EU directives.
"A fully loaded HIP may add value to your house, cost is paid by the buyer"