H.I.P.

What are Home Information Packs and why do you need one?

A HIP is a set of documents that provides the buyer with key information on the property and must be provided by the seller or the seller’s agent. It is a legal requirement to have a HIP and you can’t market your property without one. The HIP lets buyers see important information about the property at the start of the process. This means there is less chance of buyers becoming aware of any surprises at the end of the process. The HIP can help reduce delays and extra expense to the buyer and seller.

The Home Information Pack (HIP) is compulsory for most homes on the market in England and Wales.

What does a HIP contain?

The HIP is made up of required (compulsory) and authorised (optional) items.
Listed below are the compulsory documents that need to be included.

Compulsory documents

Freehold properties

• Home information Pack Index
• The Property Information Questionnaire (PIQ)
• Energy Performance Certificate (EPC) or Predicted Energy Assessment (PEA)
• Sale statement
• Evidence of title
• Standard searches (local authority and drainage and water)

Leasehold properties

• All the compulsory documents above
• A copy of the lease

Sellers

All the above documents must be in place before the property can be marketed, only the standard searches can be added later (within 28 days) if there is a delay in obtaining them.

The Property Information Questionnaire (PIQ) must be filled in by the seller and returned as soon as possible so as to not delay the marketing of the property, ideally the energy assessor can pick it up when they come to assess the property.

Payment options

• A single payment cash/cheque to cover all elements of the HIP including the EPC.
• A deferred payment (This will add an extra £82 to the total cost) ask for details.

Energy Performance Certificates

The Energy Performance Certificate (EPC) gives homeowners, tenants and buyers information on the energy efficiency of the property. It gives the building a standard energy and carbon efficiency grade from ‘A’ to ‘G’, where ‘A’ is the most efficient. The average efficiency grade to date is ‘D’.

What else does the certificate tell you?

The ratings are measured using the same calculations for all homes, so you can compare the energy efficiency of different properties.

Part of the EPC is a report which will list the potential rating that your home could achieve, if you made the recommended changes. The report lists:

• suggested improvements (such as fitting loft insulation)
• the approximate cost
• possible cost saving per year if the improvements are made
• how this would change the energy and carbon rating

You can use this information to:

• cut your fuel bills
• improve energy performance in your home
• help cut carbon emissions
• help you choose a more energy efficient home to rent or buy

You do not have to act on the recommendations contained in the report. However, if you decide to do so, then it could make your property more attractive for sale or rent by making it more energy efficient.

How do you get an EPC?

EPCs can only be produced as a result of a survey by an ‘accredited’ Domestic Energy Assessor. EPCs are used to collect standard information on the property – for example, its size and hot water/heating systems. The information is then fed into a government-approved software programme that produces the EPC.

Example of EPC graphs: