The advent of HIPs

WHILE their journey hasn’t been smooth, HIPs are set to transform the house buying and selling process for all involved, reducing the high number of transactions that fall though each year, costing in the region of £1m a day.
The Association of Home Information Pack Providers (AHIPP) has launched a HIP Code to ensure maximum protection for the consumer and sellers are advised to only use pack providers who adhere to this code.
As the Government is about to launch its consumer campaign, informing house holds about HIPs, AHIPP is calling for industry and consumers alike to ensure they are fully informed about their arrival.

Ten facts sellers and buyers should know about HIPs:

HIPs will become mandatory on June 1, 2007.
If you plan to put a residential property up for sale on or after June 1, 2007, in England or Wales you will need to acquire a Home Information Pack (HIP) before your property goes on the market.
The responsibility for acquiring a HIP rests with the person responsible for marketing the property, usually the estate agent, developer or auctioneer, or the seller them selves if the property is being sold privately
If your property is already on the market on June 1, 2007, you will not need to acquire a HIP unless it is still on the market after November 1, 2007. (Thisdatemaychange).
The main documents that must form a mandatory part of the pack, and must be present before the property is marketed, are:

Index

Energy Performance Certificate (EPC)

Title documentation

Sale statement

Local searches (or at least proof that they have been requested)

Lease hold documentation – where required (or at least proof that this has been requested)

The HIP may also include a Home Condition Report (HCR), at the seller’s request.
Over 1,600 HIPs have already been commissioned in the first six early-roll-out locations (Bath, Cambridge, Huddersfield, Newcastle, Northampton & Southampton) which commenced in November 2006.
Consumer feedback in the initial six locations has reported that consumers like packs and have found them a useful selling tool. In over 20 locations across England and Wales, consumers are already being offered the option of getting a HIP on their home. The Association of Home Information Pack Providers (AHIPP) has introduced a set of standards for pack providers called the HIP Code of Practice. Packs produced by approved pack providers will carry insurance and will be identified by a HIP Code logo.
Mike Ockenden, director general, AHIPP , said:“HIPs are being introduced to help improve the house buying and selling process for all involved, bringing more information about a property to the front of the process, allowing buyers to make more informed decisions and reducing the number of sales that fall through.
“This should greatly reduce the needless stress associated with buying and selling homes in this country”