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Home Information Packs (HIPs)

Home Information Packs (HIPs) will be mandatory for all residential house sales from 1 June 2007. The government believes the packs, which will contain required and authorised (voluntary) information such as land searches, Energy Performance Certificates (EPC), etc, will speed up the UK house buying and selling process.

The Department of Communities and Local Government (DCLG) is responsible for the implementation of HIPs following a government reshuffle in 2006 which saw the Office of the Deputy Prime Minister replaced. The DCLG is currently headed by Ruth Kelly MP. The DCLG website is available here.

The implementation of the packs has proved controversial with many in the mortgage and housing market especially given the Government u-turn on Home Condition Reports (HCR). Initially, the HCR, a report giving the buyer, seller and mortgage lender information on the physical condition of the property, was a mandatory part of the pack. The Government decided in the summer of 2006 that this should no longer be the case and HCRs need only be placed in the pack if the seller wishes.

Members will need to consider the possible impact of HIPs on their businesses and how they are to respond. For instance, some members may wish to provide HIPs to their clients perhaps through a third-party HIPs supplier. Members should therefore use this time to work through their plans leading up to 1 June 2007.

AMI's HIP Working Group

AMI has a HIPs Working Group which was set up to enable AMI to explore the potential impact of the initiative on the industry as a whole, but particularly on members' businesses. The Working Group helps AMI feedback to members the latest developments and provides useful information for members on how to prepare for this change to the home-buying process.

To help members with these decisions, AMI produced a 'HIPs update' factsheet in August 2006 following the Government's announcement. Its purpose is to provide members with clear information on the changes announced by the Government, how this affects the delivery of HIPs and areas for members to consider as they develop and implement their own plans for HIPs within their businesses.

The factsheet also looks at the contents of the packs as well as prohibited documents. It also gives brief information on those exceptions where a HIP will not be necessary, information on the transitional period, penalty charges, certification schemes and inspectors, plus testing of the packs and potential costs.

The 'Green' issues

Much focus has been placed on the Energy Performance Certificate (EPC). The EPC is in place to comply with the EU Directive on the energy performance of buildings and provides details on the energy performance of the home and improvements which could be made. Trained Energy Inspectors will produce the certificates for each home.

Factsheet No.35 'HIPs Update' is available here.

Members can access government information on the packs and their implementation here.

The Association of Home Information Pack Providers' website provides information on its members - those firms who will be able to supply intermediaries with packs for clients - and will track changes as the move to the 1 June 2007 implementation gathers pace. The website can be accessed here.

The packs are currently undertaking a 'dry-run' trial in six locations with more to follow in the New Year. The six locations are currently Bath, Cambridge, Huddersfield, Newcastle, Northampton, and Southampton. By early December 2006 120 businesses, including 85 estate agents, had signed up to offer sellers the opportunity to produce a HIP on their property.