HIPs are having a 'major impact' on the housing market

Home Information Packs (HIPs) are having a major impact on the housing market, according to figures released by the Government.

HIPs are now obligatory when selling homes of all sizes in England and Wales. They're provided by the seller for the benefit of potential buyers and must include information such as evidence of title, terms of sale and the results of standard searches. There must also be an Energy Performance Certificate (EPC) rating the energy efficiency of the property.

Research carried out on behalf of the Government shows that more than 640,000 HIPs have been produced, most of them within 7 to 14 days. More than 700,000 homes now have EPCs containing energy saving recommendations that could save each household an average of £300 in fuel bills.

One other effect of HIPs has been to create greater competition in the property searches market. This has led some local authorities to reduce their search fees by up to £120.

When HIPs were introduced there was a provision for first day marketing to ensure a smooth transition to the new system. This allowed for a property to be marketed without a HIP if the required documents had been commissioned and paid for and there was an expectation that they would arrive within 28 days. This provision was due to expire at the end of May but now the Government has decided to extend it until the end of December this year.

There was also a provision covering leasehold properties which meant that a HIP could contain the lease only. This was because of the difficulties and cost involved in the provision of leasehold information. This provision was also due to expire at the end of May but has been extended until the end of December to give more time to assess the problems.

Please contact us if you would like more information about HIPs or any aspect of buying a selling a house.