Suspension of Hips [Home Information Packs]

On 21st May 2010 the new Coalition Government suspended the requirement that home owners provide a Home Information Pack (“HIP”) when marketing the property for sale. This is a suspension of the duty, but the new Government has stated that there are no plans to introduce a replacement scheme at this time. It should be noted that the suspension of the Home Information Pack does not affect the position of home sellers who placed their property on the market prior to the suspension date.

The suspension does not remove the requirement that an Energy Performance Certificate (“EPC”) be commissioned prior to marketing the property. The “EPC” is a report that must be produced by an accredited Energy Assessor which shows the energy efficiency of the home being marketed, and remains valid for a period of ten years. This duty extends to providing an EPC when letting a residential property.

Here is a list of some frequently asked questions and answers that may assist when considering the sale or purchase of a home.

1. What should I do now if I want to sell my property?
   As stated, there remains a requirement that an “EPC” report be commissioned prior to the marketing of your property. This report can be ordered through your Estate Agent, with an Energy Assessor being able to visit your property within a few days of instruction.
2. What if a potential buyer requests a HIP?
   As the suspension of HIPs come into effect on 21st May 2010 there is no longer a legal obligation to produce one. It should be noted however that a solicitor can prepare a selection of key documents for your potential buyer that will help speed up the process of selling your home.
3. Is there any penalty or sanction for not providing an “EPC” to a potential purchaser?
   There is a fixed penalty of £200.00, with the responsibility for enforcement being placed with Trading Standards Officers.
4. When does the “EPC” have to be provided?
   The “EPC” should be provided to a potential purchaser at the earliest possible opportunity. This becomes a requirement upon exchange of contracts.
5. Can a buyer rely on a HIP commissioned after the suspension date?
   A buyer can rely on a HIP produced after the 21st May 2010, so long as the HIP is compliant with the original regulations.
6. Should a purchaser ask whether a HIP has been produced for a property that they enquire about after the suspension date?
   It is considered best practice for a potential buyer to still ask the seller if a HIP has been commissioned for the property.
7. How does the suspension of HIPs benefit me as a seller?
   This will initially save the seller some money as the requirements now only extends to the production of an “EPC”. There will therefore be no duty for the seller to pay for the buyer’s searches in relation to the purchase.