HIPS Go Live This Week

This week finally sees the start of the controversial Home Information Packs (HIPS) for the sale of homes with four or more bedrooms. Details will be logged on a new central database funded by a levy on every pack and by 2010 it is expected to contain details of 10 million homes. S

Some already fear that the information revealed will be used to push up council tax as it emerged that The Valuation Office Agency, who will be in charge of future Council Tax Calculations, has asked for access to the new Home Information Pack database.

Shadow Local Government Secretary Eric Pickles said: “Labour’s plans for Home Information Packs are nothing less than a home information tax. This isn’t about making it easier to get on to the housing ladder, it’s just a stealthy way of conducting council tax revaluation by the back door....You’ll have to pay the state to inspect your home and help taxman hike your council tax."

For those that HIPS now apply for here is what they Include:

A Home Information Pack Index

The index provides a checklist of the documents that must be included in the pack. Where a document that should be included is unavailable, the index must say why it is missing and what steps are being taken to obtain it.

Energy Performance Certificate The Energy Performance Certificate tells people how energy efficient a property is on a scale of A to G, with the most efficient homes being rated A. The certificate also rates the impact the home has on the environment on the same scale. The document includes recommendations on how to improve the home's energy efficiency. The average property in the UK is in bands D to E for both ratings.

Sale Statement The sale statement should give basic information about the property's site, including the address, whether the property is freehold, leasehold or common hold, whether it is registered or unregistered and whether or not it is being sold with vacant possession. Standard Searches These include Land Registry searches and other records held by the local authority on issues that may interest buyers, such as planning decisions and road building proposals, as well as searches showing the provision of drainage and water services to the property. Evidence Of Title These documents prove the seller owns the property and therefore has the right to sell it. For registered properties this means official copies of the individual register and the title plan from the Land Registry. Additional Documents For properties that are leasehold there must be a copy of the lease and any amendments to the lease and rules that apply to the property but are not mentioned in the lease. There must also be a summary of service charges for the past 36 months and the most recent requests for payment of service charges, ground rent, and buildings insurance. The name and address of the leaseholder and details on a managing agent, as well as a summary of any work being undertaken. Similar details are required for common hold properties. Optional Documents Sellers may also want to include a Home Condition Report on the physical condition of the property, a summary of the legal content of the pack, information on boundaries, planning permission and anything else that might interest the buyer, and non-standard searches, such as a mining search in coal mining areas