Certus Mortgage Solutions: Summary of the latest HIPs legislation

The recently re-drafted regulations for Home Information Packs (HIPs) contained some very important changes which clarified considerably what will happen when HIPs become part of the UK housing market in June 2007.

Unable to meet the initial timetable in full, the government has announced that the Home Condition Report (HCR), will initially be a voluntary element of the HIP. This enables the planned launch to the general public to go ahead on 1st June.

The government has now appointed MORI and the Buidings Research Establishment to evaluate the initial dry run results, which included over 14,000 HIPs, largely without HCRs. Further dry runs are set to begin in autumn to test Energy Performance Certificates (EPC) and HCRs, with the results expected in March 2007. Home inspectors are also still being encouraged to train.

What's in

The EPC, which rates the energy efficiency of the property, will be still be compulsory, as well as:

The sale statement

Evidence of the seller's title to the land

Leasehold information

A Local Authority Search together with Water and Drainage searches

Copies of any New Homes Warranty

What's out

The HCR will be a voluntary, rather than a mandatory element of the HIP. They would have comprised:

Basic structural survey

Details of any interior or exterior problems

Details of outbuildings' walls and fences

The government said that it has only postponed mandatory HCRs and is encouraging voluntary ones. It has requested estate agents to encourage their vendors to purchase a HCR and complete their HIP, despite the fact that it will not be mandatory.