HIP required for all properties
The Home Information Packs (HIP), at times called a ‘Seller’s Pack’, have been a source of controversy since their introduction. In accordance with the Housing Act 2004, Home Information Packs are required before a home in England and Wales can be put on the market for sale. The government has steadfastly supported the Housing Act 2004 citing that requiring HIPs for homes on the open market would vastly reduce the amount of aborted sales.
Originally, all homes were to be subject to the Home Information Pack requirement. However, the introduction of HIPs was not a smooth transition, so in order to ease the transition, it was decided that Home information Packs would be introduced in phases. In August of 2007, it became mandatory for all homes of four or more bedrooms on the open market to include a Home Information Pack. In September of 2007, the HIP requirement was extended to three bedroom homes. As of 14th December 2007, all homes listed on the market are required to include a Home Information Pack.
So if you are planning to list your home for sale in England and Wales, what this means for you is just a bit of extra work on your part. This extra step when listing your home for sale is an added inconvenience as there are certain disadvantages to including a Home Information Pack. One of the most prominent and glaring disadvantages to including a HIP when listing your home is the added expense. Though the government has indicated that including a Home Information Pack with your listing should speed up the home selling process considerably, there is no appreciable evidence indicating this.
If you are considering purchasing a home, there are disadvantages for you also with the Home Information Pack requirement. The inclusion of these documents is supposed to help you, as a buyer, make an informed decision when purchasing your new home. Though HIPs are supposed to speed up the buying process and reduce the need for renegotiation on your potential home purchase, in truth they are just more unnecessary ‘red tape’ to wade through. And the added costs for sellers translate to additional home purchase costs on your part.
Requiring Home Information Packs for listing homes can add additional upfront costs that will likely run from £300 to £600. And if there is no regulation of this cost, it may rise to as high as £1,000 in certain metropolitan areas. For those selling homes, this may mean passing this cost onto the buyer, which can mean that your home is on the market longer than originally anticipated.
So what is included in a Home Information Pack? These packages include information about the property for sale, such as an Energy Performance Certificate, Local Authority Searches, and Title Deeds - all things that buyers normally check out on their own. According to the government, HIPs are supposed to ensure that home sellers and buyers experience a smooth transaction, but they can actually slow down the sales process. Though they are being touted as the next best thing by the government, at the moment they are a ‘hard pill to swallow’ for all parties concerned.
If you need to sell your property quickly with the option to rent it back, Rent Back Direct can help. A sale to us would not require a HIP and would not have any fees for you to pay.