“The Government is committed to making it easier for people to buy and sell homes in England and Wales through the introduction of the home information pack (HIP).”
It is also a common sense idea. Many other countries have had similar schemes for years and they have proved themselves to be an advantage to both buyers and sellers.
The current home buying and selling process is slow, wasteful and stressful. More than 1 in 4 transactions currently fail between offer, acceptance and exchange of contracts. Of these, more than two-fifths fail because of survey or valuation inspection findings. Additionally, only one in five buyers commission a survey and this leads to unexpected repair costs after the sale has gone through.
To improve this situation, the Housing Act 2004 has created the Home Information Pack that contains a new property condition report called the Home Condition Report. There is also a new class of surveying professional, the 'Licensed Home Inspector', who has sole responsibility for the production of Home Condition Reports.
The aim of a Home Information Pack is to assemble a range of essential information before a property is placed on the market. Any prospective buyer will then be able to make an offer based on full details of the property and any problems they may face whilst the sale is going through. This is expected to reduce failed sales and speed up the sales process.
From August 2007, home-owners or their selling agents will be required to have a Home Information Pack when marketing homes for sale. They will need to make a copy of the pack available to prospective buyers on request. The legislation will also require estate agentswho market homes for sale to belong to an approved redress scheme.
The main change from the seller’s point of view will be that they have to provide the local searches and a property survey, that were previously paid for by the buyer.
The upside is that the seller will benefit from the same free information provided by the seller of their next property.
The contents of the Home Information Pack are controlled by law and are listed below. However, as you must have this pack, it makes sense to include other information, around the Government’s pack, to show your property in its best light.
An Energy Efficiency Report
Evidence of Title and deeds of the property (from the Land Registry)
Local authority searches
A sale statement. (A basic description of the property)
Forms for the seller to complete, detailing fixtures and fittings
Guarantees and warranties for building work and windows
Information related to water, drainage and flooding
If the property is leasehold additional information will be provided including: a copy of the lease; details of the landlord or managing agent; copies of previous ground rent and service charge bills.
