It has been announced by the government this week that Home Information Packs (HIP) will be required for one and two bedroom properties from the 14 December 2007. It has been a requirement from the 1st September 2007 for three bedroom properties to have a HIP in place.

What Documents are in a standard HIP?
• Home Information Pack Index
• Energy Performance Certificate
• Sale statement
• Standard searches
• Evidence of title
Why have HIP’s been introduced?

The introduction of HIPs is part of a wider programme of reforms to home buying and selling including e-conveyancing and better redress, which aims to provide consumers with a clearer, more transparent and effective service, with better value for money, benefiting all potential homebuyers and helping in tackling climate change.

The Government introduced the packs in order to reduce the increasing number of failed home sales. Under previous legislation, much of the information required by the buyer was only available after the offer to purchase had been tendered. This meant that any problems regarding the condition of the property or legitimacy of any documents provided, was not revealed until actual costs had already been incurred. Often this led to the need to completely renegotiate the terms of the sale, lengthy delays in the contract exchange process and the eventual failure of many transactions.

The Advantage of extending HIP’s to all Properties

The extension of HIPs to all properties will particularly benefit first time buyers through a reduction in their upfront costs by not having to pay for a pack, helping them in getting a foot on the housing ladder.

Further Announcements this Week by the Government

Buyers whose homes score poor energy ratings of F or G (currently around one-fifth of all homes) will receive an offer of a discount or free help with energy efficiency measures from the Green Homes Service which will be established, helping to save hundreds of pounds off fuel bills, as announced by the Prime Minister this week.

Call us now on 01785 213234 to discuss your HIP