The packs contain legal information about the property, as well as an energy efficiency report and a voluntary Home Condition Report.
The scheme was first mooted in the Housing Act of 2004, as a way to cut down the time it takes to purchase property in England and Wales and reduce gazumping.
At present, buying a house takes longer in England and Wales than anywhere else in Europe, and almost a third of offers fail to proceed to completion. These uncompleted sales cost an estimated £350m a year, as they usually occur after potential buyers have spent hundreds of pounds on valuation surveys, legal fees and searches.
HIPs have been broadly welcomed by consumer groups and professional industry bodies such as the Council of Mortgage Lenders, National Association of Estate Agents and the Consumers' Association.
However, the scheme, which was trialled in several areas from November 2006, has recently come in for criticism, not least because the most important part of the pack, the Home Condition Report, is no longer compulsory.
The housing minister, Yvette Cooper, announced that the survey element of the packs would only be included on a voluntary basis. Opponents of the scheme have accused the government of performing a U-turn that has rendered the packs useless.
The HIP now mainly comprises legal documents such as title deeds, searches and the energy efficiency report.
How does the scheme work?
Anyone selling a home will have to compile for the buyer a report on the legal and physical status of the property. The reports are carried out by trained Home Inspectors.
Who are the Home Inspectors?
Most inspectors will already be working in the property market. It is expected that the majority of positions will initially be filled by estate agents and surveyors. Home Inspectors must hold a Diploma in Home Inspection, accredited by the Awarding Body for the Built Environment (ABBE).
What's in a Home Information Pack?
For freehold properties, the HIP will include documents relating to the terms of the sale, evidence of the title, replies to standard enquiries made on behalf of buyers (currently carried out by lawyers), copies of planning, listed building and building regulations consent and approvals.
Packs relating to new properties will contain copies of warranties and guarantees, guarantees for work carried out on the property, replies to local searches.
There will also be information on whether the property is on the register of contaminated land - as is required by the Environmental Protection Act 1990 - or whether searches have been made to ascertain whether the land is contaminated.
The Home Condition Report, which was to offer an objective statement of the property's condition, regardless of effect on value, is not now required. Instead, it is an 'authorised' document, which is to say, it is voluntary.
The pack contains:
An index (i.e. a list of the contents of the Pack) A sale statement (summarising terms of sale) Evidence of title Standard searches (local authority enquiries and a drainage and water search) Energy Performance Certificate Where appropriate, commonhold information (including a copy of the commonhold community statement) Where appropriate, leasehold information (including a copy of the lease, information on service charges and insurance) For new property, a New Homes Warranty Guarantees, warranties and the HCR are optional.
Who assesses my home for energy efficiency?
The requirement for an Energy Performance Certificate has been set by a European Directive which EU member states must implement.
During the home inspection, the Home Inspector will record the key information that affects the energy efficiency of a property, such as the depth of insulation in the roof and the efficiency of the boiler.The data is entered into a computer programme that calculates the energy efficiency and produces a result on an easy to read scale.
Is anyone exempt from producing a report?
Sellers conducting private sales do not have to produce a report. Nor do vendors of tenanted property not offered with vacant possession and non-residential property.
What happens if search results become out of date?
The results of searches are expected to be accepted for six months. However, if they become out of date after that point there is no obligation to renew them.
What effect will seller's packs have on the property market?
The Council of Mortgage Lenders has criticised the decision to introduce the packs at the height of the property buying season.
