In August 2007 the Government is introducing reforms that will change the way we buy and sell our homes in England and Wales. All homes put on the market after this date will need to have a Home Information Pack (HIP), prepared on behalf of the seller. It is most likely that the seller’s estate agent will arrange for the HIP to be prepared - there are already a number of established national and regional HIP providers.
A property, after August 2007, cannot be offered for sale unless there is a HIP. It is intended that the HIP will speed up the buying and selling process. The HIP will be provided to buyers so that they have information about the property up front, and can make a more informed purchase decision.
Some estate agents are currently offering Home Information Packs, as part of the Government’s dry run to test how they will operate in the market. At the moment, when you buy a property, you have to make an offer with very little information to hand. If a building defect or legal problem shows up later, it can cause buyers extra expense, ruin a sale or even destroy a chain.
The HIP aims to introduce greater certainty into the home buying and selling process, by providing certain essential information at the start of the process.
The HIP is likely to contain the following.
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An Index (i.e. a list of the contents of the Pack).
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A sales statement (summarising terms of the sale).
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Evidence of Title.
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Standard searches (i.e. Local Authority enquiries and drain and water search).
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An Energy Performance Certificate.
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Where appropriate, a New Homes Warranty.
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Where appropriate, commonhold information (including a copy of the Commonhold Community Statement).
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Where appropriate, leasehold information (including a copy of the Lease, information and service charges, and insurance).
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Energy Report.
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Energy Performance Certificate.
Home Condition Reports are to be voluntary and not mandatory.
Energy Performance Certificates – Going Green
The Energy Performance Certificate will provide energy ratings for homes, similar to consumer-friendly “fridge rating”, which already exist on fridges and other “white goods”, such as dishwashers and tumble dryers. An Energy Performance Certificate will not only outline the cost of heating, hot water and lighting in homes, but also give practical advice to potential buyers on how to cut these costs and reduce omissions. It is estimated that if just one fifth of all homeowners made the basic changes set out in their Energy Performance Certificate, they could cut carbon emissions by the equivalent of taking 100,000 off the roads – not to mention making a combined saving of around £100 million pounds a year on their energy bills. In fact, the Energy Savings Trust estimates that by following the proposals in the Energy Performance Certificate, the average homeowner could save £300 on fuel bills.
