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HIPs (Home Information Packs)

The provision of Home Information Packs (HIPs) became a mandatory requirement for anyone putting a home up for sale from 1st August 2007.


Home information packs were put into the new Housing Act 2004, and basically homeowners or their estate agent now have a statutory duty to have Home Information Packs available for potential buyers at the time they put their property up for sale.


What is the Purpose of Home Information Packs (HIPs)

Home information packs were introduced in order to reduce the number of failed house sales. Under the old legislation, alot of information needed by the buyer was only available after the offer of purchase. This meant that any problems with the property or its condition or any problems with the legitimacy of any documents provided, was not revealed until actual costs had already been incurred. Often this led to the need to completely renegotiate the sale, lengthy delays in the contract exchange process and the eventual failure of a lot of transactions.


And so it was decided to reduce the massive ammount of money and resources wasted on failed sales, especially fees wasted by the buyer with things such as legal fees, searches and disruptions to motgages etc which led to an eventual collapse in the deal when unsatisfactory factors were revealed. In providing this essential information at the start of the selling process, the Government’s intention was to make the whole procedure of house purchase faster by reducing waste in time and financial resources which will drastically cut the number of failed home sales.


It was estimated that previously around £1000,000 a day was being lost on these types of transactions, which subsequently failed.


See www.homeinformationpacks.gov.uk for more information.
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