How Long Does a HIP Last For?

How Long Are Home Information Packs Valid For?

The Energy Performance Certificate is valid for twelve months. This still applies even if the property has been sold and then put back on the market within those twelve months.

Local searches are valid for six months, so it is possible that new ones will need to be included if the property is on the market beyond this time.

If a property has a break in marketing then a new HIP pack is required. However, even if the seller changes estate agency then a new Home Information Pack will not be required providing there has been no break in the marketing.

Electrical Certificates and HIPs

Do Home Information Packs (HIP packs) need to include the electrical certificate?

Electrical certificates can be included within a HIP pack. However, they are not a compulsory element of the Home Information Pack.

Therefore, only include an electrical certificate if it is easily available but do not worry if it isn't.

What is First Day Marketing of HIPs?

First Day Marketing

The Government are keen to have a HIP ready on a property before it is marketed. This is referred to as "first day marketing".

Originally, the HIP regulations were written to ensure that a property could not be marketed without a HIP being ready for the buyer to see.

AHIPP argue that this is necessary to ensure that all the relevant information is in place for the buyer to make an effective decision.

However, when HIP packs became law a temporary exemption was made, until 1st January 2008, that a property could be marketed providing a HIP pack had been ordered. This was seen necessary to ensure delays did not occur in the home buying process.

When HIP packs became compulsory for all properties in December 2007, the temporary extension was further extended until 1st June 2008.

Splinta, which stands for the Sellers' Pack Law Is Not The Answer, has today launched a petition to ask the Government to make the temperorary exemption permanent.

Do Leasehold Properties Require A HIP?

Leasehold Properties and HIPs (Home Information Packs)

Leasehold properties have required a HIP from 1 August 2007.

However, many leasehold properties are 1 or 2 bedroom properties, in particular flats and apartments, which legally required a HIP from 14th December 2007.

A copy of the lease document is a compulsory element of a leasehold HIP. Further leasehold documents should be included where possible but are currently voluntary. These additional documents are listed below and are scheduled to be made compulsory in June 2008.

A copy of the lease *compulsory
Name and address of Landlord & Managing Agents
Service Charge statements over last 36 months
Financial requests made by Landlord over last 12 months
Regulations or rules made under the lease
Proposed amendments to the lease
Summary of proposed building works

Legalalties and Fines for Properties Without A HIP (Home Information Pack)

What are the legal consequences of non-compliance with HIP regulations?

Responsibility for enforcement of the Home Information Pack regulations lies with Trading Standards Officers.

In the first instance you are likely to receive a warning. £200 penalty notices can be issued.

If a penalty notice is received the Trading Standards are obliged to notify the Office of Fair Trading. A banner order for an estate agent is possible at this stage.

Confirmation of the possibility of receiving a banning order has been confirmed by the OFT.

Do private house sales require a Home Information Pack (HIP)?

Do private house sales require a HIP?

Yes. Provided the property has been marketed.

Any form of marketing including a local advertisement or a 'for sale' sign means that even private property house sales require a HIP.

The only exception is when the sale takes place between individuals without any form of marketing such as between family members.

HIPs deliver improvements in property search timescales

HIPs deliver improvements in property search timescales

The Government has introduced new steps to ensure that local authorities and private search companies better work together.

Local authorities will be obliged to speed up access to their records within one working day and, in return, they will be able to request a fair charge for the improvement in access.

Historically, local authorities and personal search providers have been in competition with each other. This has led to variations in the time it can take for a personal search to be completed.

Local property searches are a compulsory component of the Home Information Packs (HIPs) but the turnaround of HIPs have been affected by the availability to data offered by local councils.

Additionally, local councils are increasingly reducing their prices for their own searches as a direct response to the competition from private providers as a result of HIPs.

The steps announced by the Government come in response to an OFT recommendation to improve competition between the public and private sector in the delivery of property searches to consumers.

Junior Housing Minister Iain Wright said:
"Homebuying and selling can be a stressful experience and we are committed to improving the system for people.
"By levelling the playing field for providers consumers will be able to get important property information earlier in the home buying process and see the costs coming down as a result."

Home Information Packs (HIPs) are already beginning to bring benefits to consumers with average property search costs starting to fall because of the new competition created by HIPs - 85 local authorities have already reduced their charges by £30 on average. Today's announcement will go further to ensure consumers get a better deal.