Q. What is the current legal position in respect of HIPs?
A. An entirely new law, The Home Information Pack Regulations 2007, which came into force on June 1st 2007 and were subsequently extended on September 10th 2007, now relate to the sale of all properties possessing three or more bedrooms, but with certain exceptions. The previous regulations which were first debated in 2006 are no longer valid. ( back to top )
Q. Where can I find out more details about the new regulations?
A. You can make a start by accessing http://www.hipsdirect.com/ where a good overview is provided. There is a link here to the full regulations, but these make for very heavy reading. A good alternative would be to talk to your estate agent or conveyancer. ( back to top )
Q. Did HIPs become compulsory on September 10th?
A. Yes, but only for residential properties, and, as noted earlier, there are some exceptions even in these circumstances so it’s best to check the facts. As an example, a private sale where the property is not offered on the open market will not require the compilation of a HIP. Properties in Scotland and Northern Ireland are also exempt. ( back to top )
Q. What information must be included in a HIP?
A. The regulations stipulate that the following documentation and information must be included:
- A simple index which lists what is in the HIP.
- A Sales Statement which accurately describes the property being offered
for sale.
- Evidence of Title, which describes the property in legal terms, and proves
that you are the legal owner of the property you are offering to sell.
- A listing of all the standard searches that have to be undertaken in order
to proceed with the sale. These will include water, drainage, land
charge register, and local authority records.
- An Energy Performance Certificate or EPC. This has been introduced by the
Government to enable the UK to comply with certain aspects of EU law. To
acquire an EPC the property for sale must be assessed by a qualified
Domestic Energy Assessor who will compile an appropriate report.
- A Home Use Form. This explains what the property is used for and also
provides information about things such as planning permissions either
granted or applied for. It is there to ensure that potential buyers are
aware of all possible relevant information about the property.
- A Home Contents Form. This lists all the items that the current owner is
to include in the sale. Details of carpets, curtain rails, light shades,
bathroom cabinets and the like are listed here so that all parties are
specifically aware of what they are, and are not acquiring as part of the sale.
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Q. Can additional information be included if the seller thinks that disclosure might assist the sale?
A. Generally yes. The regulations provide examples of a whole raft of additional information which might usefully be included. Examples are any warranties for work carried out on the building, photographs of the property and receipts for maintenance works recently undertaken.
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Q. What’s involved with an energy performance certificate?
A. In simple terms, this states how efficiently energy is consumed in the property and what impact that consumption has on the environment. Standard procedures are used to assess both factors and the property is then given both an energy efficiency and an environmental impact rating. As part of this assessment, recommendations are made indicating where improvements could be made in respect of both factors. For example, in the case of a property with no loft or cavity wall insulation an obvious recommendation would be to install both. ( back to top )
Q. How is environmental Impact assessed?
A. This is closely associated with carbon Dioxide (CO2) emissions. To establish the levels, energy type and usage are identified and calculated respectively based on standard procedures. From the resultant figures, the amount of CO2 released into the atmosphere on an annual basis is calculated and quoted. Recommendations are made as part of the report indicating how CO2 levels could be reduced. Typical example would be to ensure that all room thermostats are functioning correctly and electrical appliances are turned off when not in use. ( back to top )
Q. How do I acquire a HIP for my property?
A. Firstly, you should only prepare one if you are sure you are going to offer your property to the market within a short time as HIPs can become dated. You can prepare the document yourself, but you will need a qualified inspector to undertake the measurements associated with the energy and environmental efficiency certification. An estate agent will be able to organise everything on your behalf and it is anticipated that most people looking to move will go through this route.( back to top )
For more information on HIPs and how they affect your property sale or purchase, please telephone mortgage talk’s HIPs Hotline on 0800 996 1111 or e-mail: hips@mortgagetalk.co.uk