What is a Home Information Pack ?

The Housing Act 2004 introduced Home Information Packs  (HIP) to the public. Previously known as  a Seller's Pack, a HIP must be provided before a property in England and Wales can be put on the open market for sale with vacant possession. A Home Information Pack is a set of documents ( mainly conveyancing relevant ) about the property: an Energy Performance Certificate, local authority searches, title documents, guarantees, etc..

The introduction of HIPs has been subject to delays and reduced requirements, but the on August 1st 2007 the first stage of the HIPS launch was rolled out. As of that date all houses with four or more bedrooms had to have a HIP before being put on the market. The roll-out approach continued on September 10th, by which time all houses with three or more bedrooms had to have a HIP before being placed on the market. Then it was announced that from December 14th 2007 onwards all properties must have a HIP.As of April 6, 2009, all newly commissioned Home Information Pack   must contain a Property Information Questionnaire (PIQ).

The Government cited the theory that Home Information Packs would lead to a reduction in the number of abortive ( conveyancing )  sales as their justification for introducing the scheme, reducing gazumping and gazundering and wasted conveyancing and other costs as result of abortive transactions . Despite vociferous  opposition from the building industry and estate agents, as well chartered surveyors HIPs were nevertheless introduced. There are claims that the Home Information Packs  have contributed to the 2007-09 housing crisis by deterring vendors from marketing their houses due to the extra costs involved in the survey. As the months have gone by if is generally accepted that the causes of the property crash were somewhat more complicated than the introduction of Home Information Packs and Property Information Questionnaires.

The justifications for the Home Information Pack developed and evolved over time. A proposed solution  to address the problem of gazumping was first made in the 1997 Labour Party manifesto but was also raised  by the Conservatives in the early 1990’s.  Research after the 1998 election revealed that around 28% of sales fell before exchange of contracts, with gazumping occurring in fewer than 2% of sales. The emphasis subsequently moved to the benefits of increased conveyancing speed, transparency and consumer friendliness. The idea is based on similar practice for Home Information Packs used in Denmark and New South Wales, Australia. The Labour Government has even abandoned the original intention of the Home Information Pack s, Instead, cynics say that  it sought to give the scheme a spurious cloak  of environmental legitimacy by insisting they contain information about energy-efficiency levels. The main supporter was the consumer group Which?. It welcomed the chance to improve the buying and selling process, which costs around £1m a day in wasted conveyancing transactions.

Home Information Packs were announced in the Queen's Speech in November 2003. By 2006 a number of organisations had expressed an interest in running certification schemes and over 3,000 people were already going through training for the home inspector qualification. Conveyancing lawyers were not central to the certification schemes.  In June 2006 draft regulations were made setting out the detailed contents of Home Information Packs, rules governing the availability of Home Information Packs , exceptions from Home Information Pack duties and arrangements for enforcement.

The government  subsidised in June 2007 5000 Home Information Packs by £100 prior to the official launch date of August 1, 2007. The subsidy did not cover any conveyancing.

First Day Marketing (FDM) is a term used to denote the mandatory requirement to make available all of the documents required within a HIP on the first day a home is marketed to the public. Initially, the date was set for the requirement to commence on 31 December 2007 but was delayed until 1 June 2008 to allow a period of transition. A home can be marketed during this time providing a commitment to pay for a HIP - including the EPC - is made and the necessary documents have a reasonable expectation of being made available within 28 days. However, on May 8, 2008, Housing Minister, Manish Sidar, announced a further delay to first day marketing until 31 December 2008 and then Margaret  Beckett. suspended further until 6th April 2009.