Home information packs now required before a sale

The requirement for sellers to have a home information pack (Hip) in place when selling their home risks disrupting the property market at a sensitive time, estate agents have warned.

Until now, sellers have been allowed to market their properties without a Hip to show potential buyers, provided one has been commissioned. But from today all sellers, including those selling leasehold properties, must have a Hip from the outset.

Charles Wasdell, head of research at propertyfinder.com, said: "Sellers are already cautious in the current market and this will prevent people from testing the waters, and risks a drought of good saleable properties. The government should be trying to stimulate housing transactions, not tie the process up in more red tape."

Charles Peerless of the West End branch of Winkworths said he already had one customer complaining he could not actively promote his property until he had a Hip in place. However, he thinks the move could actually benefit the market by deterring those who are only testing the market. "It will sort out those who are serious about selling from those who are just seeing what they could get for their properties," he said.

In another change to the rules, each Hip must contain a property information questionnaire (PIQ), providing easy to understand information about the property which the government hopes will contribute to reducing the number of collapsed deals. Prospective sellers must check what information they need to provide in their Hip.

Mike Ockenden, director general of the Association of Home Information Pack Providers, said: "Providing simple, easy to understand, upfront information regarding a property will enable buyers to make a more informed decision, meaning they are less likely to pull out later in the process.

"The PIQ will also raise consumer awareness and appetite for the Hip, as vendors completing the questionnaire are likely to request to see similarly completed forms for any properties they go on to view."

What a Hip must include

Index

Property information questionnaire

Energy performance certificate or Predicted energy assessment

sustainability certificate (new homes only)

Sale statement

Local authority searches (can follow up to 28 days later if not immediately available)