Monday 30th July 2007
(ref:
224/2007)
If you’re thinking of selling up and moving on from this month (August) onwards you’re going to have to get HIP.
From Wednesday August 1, the government’s much-anticipated Home Information Pack (HIP) legislation comes into force, for homes with four or more bedrooms.
Wigan Council’s Trading Standards team is now urging homeowners and estate agents alike to make sure they know what their responsibilities are.
Wigan Council’s Chief Trading Standards Officer Julie Middlehurst explains:
“The original intention behind the home information packs was to help reduce the number of property sales that fall through.
“The government felt that if more information was presented to the buyer up front, there would be less chance of something being discovered later on which would cause the sale to fail.”
The packs were also intended to speed the buying process up and place more emphasis on energy efficiency in homes. It was originally intended that the packs would have a structural survey of the property at its core but changes mean that this now only needs to be included on a voluntary basis.
However, what does need to be included in the HIP is:
- HIP index – this provides a checklist for sellers, buyers, estate agents and other organisations.
- Energy Performance Certificate (EPC) – this indicates how energy efficient a home is on a scale of A to G.
- Sale Statement – this provides basic information about the site, including the address and status of the property (freehold or leasehold).
- Standards Searches – This provides information about local land charges, any planning application affecting the property and information about drainage and water supplies.
- Evidence of Title – This proves the seller owns the property.
The pack must also include a copy of the lease. The cost of the HIP has been estimated at between £400 and £700.
Julie says: “It will normally be the responsibility of seller’s estate agent to commission the HIP and up until the end of the year a property can still be marketed as long as it can be proved that one has been commissioned.
“Estate agents will also need to sign up to an approved HIP complaints redress scheme as well.”
She adds: “If a house with four or more bedrooms is put on the market without a HIP then the estate agent could face a fine of up to £200. We would hope to work with both the borough’s estate agencies and the public to ensure everyone is aware of the new rules.”
The HIP requirements for smaller properties will be phased in as the number of assessors increase.
Trading Standards say they expect a large number of inquiries about HIPs over the coming months from the public and estate agents.
