HIPs Q & A

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By Nicky Burridge, PA Personal Finance Correspondent

After much delay Home Information Packs have been launched.

Q: Why are the packs being launched?

A: The packs aim to speed up the home-buying process by giving people more information on a property before they put in an offer.

Having more information upfront should also help reduce the number of sales that fall through. Around 30% of sales currently collapse between offer and exchange, the equivalent of around 500,000 transactions a year, leading to £350 million being wasted in fees.

The Government is also putting emphasis on the environmental benefits of the packs, as the energy performance certificate will give people information on how they can reduce their energy consumption and make their home more environmentally friendly.

Q: Who will need one of the packs?

A: From August 1, all sellers in England and Wales whose property has four or more bedrooms must have one of the packs. The packs will be extended to smaller properties as soon as enough energy assessors have qualified. If a property is put on the market before August 1 there is no need to have one of the packs.

Q: What will the packs contain?

A: The packs must contain an energy performance certificate, information on whether the property is freehold or leasehold, standard searches, evidence of title and information on the lease if it is a leasehold property.

Sellers may also want to include a home condition report, a summary of the legal content of the pack, information on boundaries and planning permission, and non-standard searches, although this information is not compulsory.

Q: Where can I get one of the packs and how much will it cost?

A: Hips will be available from estate agents, solicitors, specialist Hip providers or people can compile them themselves.

Estimates on how much the packs will cost vary, but most experts think it will be in the region of £300 to £500. They would have been more expensive if the home condition report was compulsory.

Q: Why has there been so much controversy about the packs?