The government recently announced the final stage for the introduction of Home Information Packs (HIPs) in England and Wales. Although these were first introduced in the summer, until this announcement, only owners of properties with three or more bedrooms needed to have a HIP before they could put their property on the market. From 14 December, if your home has one or two bedrooms, you must commission a HIP before you can market it.

HIPs have been introduced to speed up the home buying and selling process, as well as highlight the energy efficiency of our homes. They contain much of the legal documentation that is currently obtained by solicitors, as well as an Energy Performance Certificate which shows how well you use energy in your home.

Although HIPs take only about a couple of weeks to put together, if you want to market your home quickly, this delay could potentially mean lost buyers. Therefore, until June next year, you can market your property even if the HIP hasn't been completed, as long as you ensure that the energy ratings for your home are included on the property particulars. 

Most homes with one or two bedrooms are leasehold flats and previously the complete documentation about the property had to be included in a HIP. This meant obtaining details such as service charges, management accounts, ground rent, details of recent works being carried out, as well as the lease. However, this requirement has been relaxed and now you only need to include the lease within a HIP, which will make the process of putting a HIP together far quicker and more cost effective than before.

It is first time buyers who will benefit the most from these changes, as it is now the seller who has to pay for some of the legal costs instead of them. 

HIP FAQs

1. My house is already on the market, do I now need a HIP?
   
   No. HIPs are needed for new instructions only.
   
   
2. If I take my house off the market over Christmas and re-launch it in February, will I need a HIP?
   
   Yes. If there is any break in marketing, then you will need to produce a HIP.
   
   
3. The property I am selling is rented to a tenant. Do I need a HIP?
   
   If the tenant is not moving out, then you will not need a HIP.
   
   
4. I am thinking of putting my property on the market in February. When should I organise a HIP?
   
   As near to the time when you plan to start marketing the property as possible, to avoid the searches going 'out of date' (see question 5 below).
   
   
5. How long is a HIP valid for?
   
   Although there are no time limits on the validity of a HIP, solicitors may need to update the local authority searches after approximately three to six months.
   
   
6. How much does a HIP usually cost?
   
   A basic HIP, that is compliant with the regulations and uses personal local authority searches, will typically cost between £300 and £350 plus VAT. However, for a more useful one, with authorised local authority searches, expect to pay around £450 to £500.
   
   Lawpack's Self-Help Home Information Pack Kit shows you how to project manage your own HIP and it can help you to save money.
   
   
7. What documents have to be included in a HIP?
   
   Although there is huge scope for documents to be included in a HIP, at the absolute minimum, you need the following:
   
   • Index
   • Sale Statement
   • Title documentation
   • Local authority and drainage searches
   • Energy Performance Certificate
   • Copy of the lease (if appropriate)
     
     
8. Who can provide a HIP?
   
   There are many companies on the market offering reduced priced HIPs, or alternatively, you can contact your solicitor to obtain the documentation for you.

Peter Ambrose is a director of The Partnership (www.thepartnershiplimited.com), an independent Home Information Pack provider and author of Lawpack's Self-Help Home Information Pack Kit.

Further information
Save money on creating a HIP with Lawpack's DIY Home Information Pack Kit
Been fleeced by your estate agent? What to do next
Tips on getting that 'show home' look
The best way to conduct property viewings