Home Information Packs (HIPs) were suspended as of midnight on 21 May 2010.
In one of the first acts of the new coalition government, emergency legislation was passed
suspending the use of HIPs with immediate effect, with the intention that they will be abolished
permanently by the end of the year. Previously, anyone selling their house needed to pay upwards of
£250 for the preparation of a HIP before they could market their property.
HIPs were introduced in 2007 to speed up the conveyancing process but had been widely criticised
and were generally thought to be a waste of time and money, as they often provided inaccurate
information about the property, having been prepared by HIP providers unconnected with the
transaction.
The need for an Energy Performance Certificate (EPC), however, remains as EPCs are required by
EU law, although a seller no longer has to have received an EPC before being able to market the
property. It is enough to have commissioned the EPC and produce it within 28 days of the property
first being put up for sale. Selling agents are required to check that an EPC has been commissioned
before first marketing the property. EPCs cost approximately £60.
For the moment, following the suspension of HIPs, the onus will be on buyers to commission
searches and make all necessary enquiries.
The Law Society would like to see a new system with a comprehensive set of standard documents
prepared by a solicitor to give prospective buyers better information about the property up
front.
Ceri Norman-Short
T +44 (0)20 7468 7239
ceri.norman-short@collyerbristow.com