What are H.I.P.s?

Home Information Packs (otherwise known as “HIPS”) were introduced last year in an attempt to speed up the house buying process. They became compulsory for houses with 4 bedrooms or more on the 1st August last year, for 3 bedroomed houses in September and for all others from December. Properties marketed before these dates but still not sold enjoy transitional provisions and do not yet need a HIP. They will do later this year if they remain unsold even if marketed before the relevant compulsory date. There are some limited exemptions where HIPS are not needed, for example, sale by family to another family member or by a member of a small group or club to another club member. Generally there needs to be some element of marketing “to the general public at large” for a HIP to apply.

There are many HIP providers and these are usually either the sellers estate agent if there is one or the sellers solicitor. Sellers can prepare their own pack if they wish.

A property can be marketed as long as a pack has been commissioned. It need not be actually available on day one of the selling process. This will change after this year so that on day one of marketing a complete pack must be ready.

A pack can contain as much information as the seller thinks necessary but must compulsorily contain a Sale Statement, Index, copies the Title and Plan, Local and Drainage Search Results and the Energy Efficiency Report.

It is not compulsory for the seller to implement any of the Energy Efficiency Certificate recommendations nor for the buyer to have to implement its findings.

HIPS are in their early days and have yet to prove any significant benefit to the conveyancing process. They only tell a small percentage of the story about a house and frequently contain documents that are out of date. They do give some extra information to a buyer “up front” but do nothing to address the issues of chains, mortgage delays, other legal problems and buyers and sellers who change their mind before contracts are exchanged.

Typically a pack can cost between 300 and 500 depending on the property type and title.