For those of you aren't aware, the governments long awaited (or dreaded) decision to introduce the Home Information Pack finally came into force, after many false starts, on the 1st August 2007.
Because of delays in training sufficient volumes of home inspectors capable in carrying out the various aspects of the HIP, this launch however was a significantly watered down document which was, at the date of the launch, only applicable to new build properties of 4 or more bedrooms.
This will in turn be applied to smaller properties as qualified home inspector levels increase, the next phase being applied to properties having 3 bedrooms or more. This will come into force on the 10th September 2007.
Even though the HIP is now a reality there is still some confusion as to what a HIP actually is or what it actually means for a seller/buyer. The introduction of the Home Information Pack was intended to be basically an MOT certificate for your home. This meant that a prospective seller would have to put in place much of the information previously done by a solicitor, searches, title, etc, as well as an electrical and gas safety certificate and home condition report.
But after a barrage of complaints from the public and strong opposition from the Royal Institute of Chartered Surveyors much of the compulsory information was removed by the time the HIP was launched.
So what exactly does a HIP need to contain?
The documents listed below are specified as "Required Content" and must be included in the pack:-
- Index
- Energy Performance Certificate
- Sales Statement
- Land Registry Title and Plan
- Copy of the New Homes Warranty (NHBC etc)
- Local Authority Searches
- Drainage and Water searches
- Additional Documents for Leasehold Properties
There are also additional documents that do not have to be included and are purely a voluntary contribution. These include:-
- Home Condition Report
- Additional property searches including Environmental searches
- Commonhold or Leasehold property information
- Warranties and/or Guarantees
- Additional Land Searches
- Home Use Form
- Home Contents Form
One of the most contentious parts of the HIP is the Energy Performance Certificate. Many people see the inclusion of the EPC as the government's method of sneaking in future European legislation prior to it becoming European law. This is seen by most people as an unnecessary burden to prospective vendors.
The EPC will give a buyer an indication of how energy efficient a property is on a scale of A to G in much the same way as can be seen now on washing machines etc, the most efficient homes being a band A.
The certificate will also give an indication, on the same type of scale, as to what impact a property has on the environment as well as what improvements can be made so that you can save money and the environment.
What Will a HIP cost?
This will obviously vary between properties but an average price is expected to be in the region of £600. This will obviously be paid by the vendor. This cost however is in some part balanced by the fact that most vendors will be looking to purchase another property on completion of their sale, and will not have to bear the cost of carrying out searches etc. as these would be included in the HIP for the property they are buying.
Many people are still wondering if there are any real benefits from the introduction of HIPs. It remains to be seen if HIPs will actually speed up the buying process as it was first intended to do. There is also still an underlying unease about trusting the seller to produce accurate and trustworthy information about, what is after all, one of the most important purchases most people will make in their adult life.
With opinion and support so divided one thing is still for sure, the argument about whether HIPs are a good or bad thing looks set to rumble on long after they have been fully implemented with some observers still of the opinion that the Home Information Pack may yet still be withdrawn as it may turn out to be a unworkable sytem.
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