HIPs required from 1st June 2007

Post Reply
Site Admin
Posts: 834
Joined: Thu Feb 24, 2005 10:40 pm
Number of Posts per Page: 50
Number of topics per page: 50
Location: Halifax

HIPs required from 1st June 2007

Post by gardenlaw » Tue May 08, 2007 8:43 am

Welcome to the new Home Information Pack (HIP)

The 1st June 2007 introduces the most controversial piece of legislation ever to hit the property selling process. This will be a confusing time for all concerned. To help out we have put together some pointers which we hope will clear up a few of the rumours surrounding the HIPs


If you chose to have a HIP produced privately the property in question must be available for sale on the open market within 3 months of the pack being produced. Otherwise the pack will be considered to contain outdated information and an updated pack will need to be produced. However, once the Property has been marketed, the Pack information will remain valid until the property is sold. It is at the buyers discretion to renew any of the HIP documents once the property has been marketed.

What is a HIP?

A HIP is an information pack which contains a number of legal documents such as property title deeds, Local Authority searches, an Energy Performance Certificate, and the voluntary option of the Home Conditions Report. Marketing of a property can not commerce without a HIP which will be paid for by the Seller.

How much will a HIP cost?
The price of the HIP will depend upon the size, value and location of the property. They are likely to be between £375 and £500.

When will HIPS be introduced?
The government plan to make HIPs compulsory from the 1st June 2007. The Home Conditions Report is no longer a compulsory element. HIP are currently being offered on a voluntary basis by HIP Providers throughout Britain.

What would happen if I market my property without a HIP?
A fine of £200 may be issued to the seller if a property is marketed without a HIP. However it is not a criminal offence.

Will the Packs become out of date?
No, once the pack is prepared, it is valid for however long it takes the property to be sold. The HIP can be renewed if requested, but this is not a requirement.

Can I keep my existing conveyancing process?
Yes. A HIP is not a conveyance, but a collection of legal documents. Buyers and sellers will still require conveyancing services.

What should I do if the buyer asks questions regarding legal documents contained within the HIP?
You must advise buyers that you are in no position to answer any legal questions and advise them that independent legal advice should be obtained.

The Home Conditions Report (HCR) has become a voluntary option, but the Government hope to introduce it as a compulsory element once enough Home Inspector have qualified and the HCR has had an opportunity to prove itself to the critics.

HIPs will not be required for the following:-

Properties in Scotland and Northern Ireland
Non-residential properties or where homes are in mixed use with commercial property
Private sales where the property is not offered on the open market (e.g. to a family member, neighbour, or friend)
Properties sold with sitting tenants and not available for owner occupation
‘Right to Buy’ sales by Local Authorities or other social landlords
Homes held on a lease of less than 21 years

The initial advantage of buying a HIP privately is that once your pack has been received you can market your property immediately, with or without an Estate Agent.

What must legally be in a Home Information Pack?

terms of sale;
an Energy Performance Certificate
evidence of title eg an office copy of the HM Land Register for the house;
replies to standard preliminary enquiries made on behalf of buyers;
copies of any planning, listed building and building regulations consents and approvals;
for new properties, copies of warranties and guarantees;
any guarantees for work carried out on the property
replies to local searches; and

Also, for leasehold properties:
a copy of the lease;
most recent service charge accounts and receipts;
building insurance policy details and payment receipts;
regulations made by the landlord or management company; and
memorandum and articles of the landlord or management company

Posts: 13
Joined: Tue Apr 10, 2007 5:52 pm

Post by Martin79 » Thu May 10, 2007 2:16 pm

Either pay £375-500 pounds for a HIP or chance a £200 fine.

I know which one I will be choosing!

Posts: 1736
Joined: Fri Mar 17, 2006 6:06 pm
Location: Essex, Spain, South of France

Post by subjecttocontract » Thu May 10, 2007 5:11 pm

Listen up...........
Firstly you don't have to pay £375- £500 for your HIP.

1. Many of my local agents are offering it inclusive of their fees.
2. You can do it all yourself (except the energy survey/rating). A solicitor on ebay is offering the deal for FREE.
3. Install a sitting tenant (on an AST) and you don't legally need a HIP.

If you choose to go down the route of not providing a HIP there are at least two problems

a) You may have difficulty attracting buyers who will think there is a problem with your property as everyone else will have a HIP.
b) The fine is not a 'one off'. It can be per day for as long as you market your property without the HIP.....so it will get expensive and it will be much more cost effective to get one.

Good luck with which ever way you choose to dig the hole for yourself. :shock:
Almost everything I say is tinged with irony !

Posts: 1736
Joined: Fri Mar 17, 2006 6:06 pm
Location: Essex, Spain, South of France

Post by subjecttocontract » Thu May 10, 2007 5:14 pm

subjecttocontract wrote: 2. You can do it all yourself (except the energy survey/rating). A solicitor on ebay is offering the deal for FREE.
Sorry.....forgot to provide the link.....here it is:

http://cgi.ebay.co.uk/How-to-Create-you ... dZViewItem
Almost everything I say is tinged with irony !

Posts: 162
Joined: Fri Jul 22, 2005 1:19 am
Location: yorkshire


Post by kathy » Fri May 18, 2007 1:31 am

where do we get an Energy Performance Certificate from? In the case of my house, a five bedroomed detached cottage set in its own grounds, we have a wood burning stove that heats 16 radiators throughout the house. I cook on it and it provides all our hot water. Most of the wood is from our own land without chopping down ancient trees. The rest my husband gets from a pattern making firm for nothing as they want rid of it and can't be bothered to sell it.
I was furious when I recently purchased a new washing machine to find they are all now cold water fill. Despite having hot water on tap all day my washing machine fills with clock rock cold water and then uses electricity to heat it up, Doh! We used to use very little electricity as I am a fan of candles, my bills for electricity were always in the region of £40 for a quarter. Now since I got this washer my last bill was £145. Unbelievable!
We do not have any other heating appliances that use electricity, no toaster, no kettle, no cooker nothing. Don't need them, just use the wood burner. We have a T.V that is switched on rarely and the computer. So I would like someone to tell me how the new fangled ideas for washing machines have benefitted me because I am lost here and think I am missing something. To cap it all the last bloke who read my meter asked to use the toilet and he left the hot tap running in the bathroom which I only discovered two hours after he had gone!!!!!Luckily the plug was wrapped around the tap otherwise I could have been flooded out.
Let nowt bother thee, nowt nor nobdy

paddy's mum
Posts: 745
Joined: Tue Sep 12, 2006 3:04 pm
Location: South Lincolnshire

Post by paddy's mum » Fri May 18, 2007 9:56 am

kathy - we are in a very similar situation to the one you describe. I cannot work out how any energy performance inspector is going to assess how energy efficient we are based, as I am informed part of the assessment will be, on looking at our power use and previous bills.

Were this house to go on the market, any fool has only to open their eyes and look to see double glazing throughout, cavity wall insulation certificate, a grand's worth of kingspan insulation in the roof, 10" loft insulation, thick heavy curtains and thermal blinds at every window, top of the range and brand new oil tank/associated systems and combi boiler, thick insulation under and around the bathtub etc etc.

However, were you to be influenced by our bills, you wouldn't be able to deduce what the heck we are doing as, like you, our woodburner is the source of almost all space heating, hot water and cooking from October round to May.

Our water use is metered. We must use less water than almost any of our neighbours, despite having by far the largest cultivated plot. We have a linked series of 11 very large water butts and much of our non-drinking water is collected from them for such things as car washing, garden watering, dog bowls, window cleaning etc. Anyone moving in here will be astounded that their water bill will double or triple unless they continue to use water as we do.

It is only my personal opinion, but I believe this legislation is both flawed and unwarranted. Almost all the documents needed for the HIPs pack has to be provided at some stage of the process in any case and I really cannot see that obtaining some of them, local authority searches in particular, can possibly help. They have a life of three months before needing to be applied for again - so what use is that to a prospective purchaser?

There is to be no element of structural survey included. Even if it were, what liability will a surveyor have to a prospective purchaser who did not commission and pay for that survey?

Providing land registry documentation is also flawed. Take the scenario where there is a covenant included in those documents. It may be a very simple, common, straightforward one. The prospective purchaser is quite likely to read it, panic and either withdraw from a sale or rush off to their solicitor and pay his fees to have something very ordinary explained to him. How it that helping to smooth the path of the transaction?

I would like to know what the government are going to do to balance the situation so that the seller also has some information, by law, provided to him such as a right to see the mortgage offer, a right to carry out a similar credit check as is done when a tenancy is applied for, a right to take a non-returnable deposit when an offer is made, accepted and a property taken off the market.

No legislation will alter the fact that people change their minds, that their financial situation alters, that redundancies happen, couples split etc etc. I think that most purchases fall through for reasons other than the ones that the new HIPs legislation addresses.

(Right .. that's my soapbox done and dusted for this morning .... !)

Posts: 162
Joined: Fri Jul 22, 2005 1:19 am
Location: yorkshire


Post by kathy » Sun May 20, 2007 3:14 am

Hi Paddy's mum we are on spring water so have no water rates bill. We are also insulated and have double glazing like you. Our interior walls are all at least two feet thick so they hold warmth in. We have no gas supply. Although we do have one of those superser things that uses bottled propane but this is a standby for the odd cold evening during the summer months when we don't light the boiler. A bottle lasts us about three years. It is in my office which is right at the top of the house two floors up. If it is cold in the sitting room we light the open fire and burn logs from our own land. We too have a water butt collecting rain water. And we recycle water from the bath for the plants in the garden Soapy water gets rid of a lot of pests.We grow our own fruit and veg, I bake bread, we are almost self sufficient as we used to keep goats, chickens, ducks, sheep and pigs.These were all fed on natural products on our land, guess you could call them 'organic' now. We collected nettles in the summer dried them and fed the sheep and goats with them in the winter. We drank goats milk and ate the meat from our own stock. Our house is full of sheep skin and goat skin rugs that we washed and cured with Alum ourselves.We made our own nettle beer and elderberry wine and champagne. The veg we grew were planted on the land forridged by the pigs, tons better than a rotavator! I cannot imagine really how much we save on water rates and heating perhaps that should go into my report! After 30 odd years it has become a way of life for us and I dread to think about having to pay for these services. We were going to sell up soon but having second thoughts maybe we will stay put for now :lol:
Let nowt bother thee, nowt nor nobdy

User avatar
Posts: 2254
Joined: Sat Apr 07, 2007 2:29 pm
Number of Posts per Page: 50
Number of topics per page: 50

Post by Mattylad » Sun May 20, 2007 6:50 pm

Time to get rid of the dishwasher & find one that still uses hot water.

Perhaps keep an an eye out on your local Freecycle group as I often see older ones going for free on there.

OR just get the bottle of fairy liquid out of the cupboard again.

From what I have seen in the press, the people that are going to come round & make these assessments are not that well qualified to do it anyway.

Any comments I give here are my own opinions, for legal advise check with a qualified solicitor.

paddy's mum
Posts: 745
Joined: Tue Sep 12, 2006 3:04 pm
Location: South Lincolnshire

Post by paddy's mum » Tue May 22, 2007 9:40 am

Mattylad - as far as I understand it, you are quite correct. Their standard of training does not particularly bother me but what does is that they will not be required to have gone through the Criminal Records checks! Just who might you be letting into your home?

Does a householder have the right to insist that an energy inspector must have and show his insurance certificate before entering your house? If not, who pays for my Ming vases when they get accidentally knocked off the mantelpiece?

Remember, if you want to sell your house, the government INSIST that you go this route - what I can't find out is what safeguards the same government has put in place for the ordinary householder.

Posts: 111
Joined: Sat May 05, 2007 9:50 pm

Post by prudryden » Tue May 22, 2007 11:11 am

They probably will not have liability insurance. Many of these "inspectors" have been unemployed and will, simply, be unable to afford it. In some cases, they probably won't even know what liability insurance is.

paddy's mum
Posts: 745
Joined: Tue Sep 12, 2006 3:04 pm
Location: South Lincolnshire

Post by paddy's mum » Tue May 22, 2007 12:31 pm

Thanks prudryden - your comment is exactly what I had understood the situation to be.

So ... I go back to my comment earlier in this thread, that this legislation is both flawed (very badly so, in my opinion) and unwarranted, in that it achieves absolutely nothing for either the seller or purchaser, but costs somebody quite a lot of money.

It is specious to say that the seller will pay it - they won't - they will either filter the costs onward or else find some other way to get the money back - taking plants from the garden, shower rails, light fittings etc.

Until the pilot studies are back in and properly assessed, I believe this legislation should not be implemented. As I understand it, there are too few comebacks for the houseowner if things go badly wrong and I do not believe that can be either fair or right.

Posts: 1736
Joined: Fri Mar 17, 2006 6:06 pm
Location: Essex, Spain, South of France

Post by subjecttocontract » Tue May 22, 2007 5:51 pm

There's a Rueters press report to say HIPS is being postponed. See:

http://uk.news.yahoo.com/rtrs/20070522/ ... 6b408.html
Almost everything I say is tinged with irony !

Posts: 306
Joined: Thu Jul 27, 2006 10:43 pm
Location: Suffolk

Re: HIPs required from 1st June 2007

Post by zaax » Mon Dec 12, 2011 11:11 am

It should be noted that Pickles suspened HIPs in May 2010 and only a engery pack is required.
http://www.communities.gov.uk/housing/h ... questions/
I know nothing about the law.

Post Reply