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| Home Information Packs (HIPs) |
| The introduction of Home Information Packs (HIPs) has been discussed for many years but on the 29th March 2007, HIP Regulations were laid before Parliament. Although suffering various changes and delays, from 14th December 2007 legislation has been in place stipulating that owners of all properties in England and Wales will need to order a Home Information Pack before putting their home up for sale. |
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| This legislation was created because buying and selling a property does not always go according to plan. The reality is that 9 out of 10 people say they’re dissatisfied with the current process. Currently, 1 in 4 transactions collapse before contracts are exchanged and £1 million a day is wasted, mainly due to transactions failing at a late stage. |
The Home Information Pack is a set of documents providing important information about a property such as searches, copies of title information, and information regarding its energy efficiency. It is designed to provide transparency throughout the selling and buying process. |
| The Government's reasons for implementing HIPs: |
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Nearly 9 out of 10 consumers are dissatisfied with the present process |
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At present, key information about the property only becomes available after terms of the sale have been agreed |
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28% of property sales fail after terms have been agreed |
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Over £350m lost a year due to high costs of failed transactions
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60% of property sales are in chains. Delay or failure in one has a knock-on effect through the chain |
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First time buyers – will receive Home Information Packs for ‘free’, making it easier and less expensive for them to get their first foot onto the property ladder. |
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| To see a Sample Home Information Pack click here. |
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