HIP changes - April 2009 | 06.03.2009

Margaret Beckett, The Housing Minister has announced changes to the Home Information Pack (HIP) Scheme.

As of 6 April 2009, part of the HIP must be in place before marketing of your property can commence. The following documents will be needed:

• The Index
• Title Documents
• Sale Statement
• Energy Performance Certificate

Where as searches will no longer need to be in place prior to marketing the property.

You will also see the addition of a “Property Information Questionnaire (PIQ)” which will give a potential buyer further information that will enable them to make an informed decision about whether to buy the property eg it will include service charges, structural damage, flood risk etc.

Searches will be improved which should reduce the risk of buyers having to pay for additional searches; however we may see an increase in the cost of searches and of HIPs in the future.

Leasehold: The only additional document required in the HIP for leasehold properties is the lease which is already currently included in the HIP. Originally the government had wanted to include full replies to leasehold enquiries and management information, but this was temporarily waived. It has now been indefinitely waived and will not need to be included. The PIQ will contain some questions on the lease and management information but these will be questions aimed at the point of view of the seller and they will be able to answer these.

No action is required at the moment, but everyone should be aware of the changes that will take effect as of 6 April 2009.