The introduction of the Home Information Pack (HIP) is part of a suite of measures brought in by the Government, aimed at making buying and selling a house easier. The Energy Performance Certificate (EPC) is a central feature of the HIP, and a requirement of the Kyoto Protocol which requires all signatories, including Britain, to have introduced energy performance certificates for all residential property by 2009.

The Government hopes that HIPs will help buyers because they bring together all the essential information about a property free of charge. HIPs will also benefit sellers by ensuring that buyers make more informed decisions about a property purchase, thus avoiding delays in the sale process.

Whether or not the HIP achieves these aims, having one is now compulsory for many of us. So if there is a chance you will be buying or selling a property, read on for the lowdown on Home Information Packs – what they are, how to get one and the likely costs.

What is a Home Information Pack (HIP)?

A HIP is a document (electronic or paper-based) which brings together important information about a property for buyers and sellers. Essentially the HIP comprises a series of searches, records and certificates. HIPs, incorporating Energy Performance Certificates (EPCs) are being phased in as of 1 August 2007.

HIPs were initially required for properties with four or more bedrooms. Sufficient Domestic Energy Assessors (DEAs) have now been trained to cope with a larger volume of homes, and as of 10 September 2007, smaller properties with 3 bedrooms will also require a HIP.

What must a HIP contain?

A HIP must contain the following compulsory elements:

• An index, providing a checklist of the pack contents. The index should clearly show if documents have been added or removed from the HIP after the initial date of production
• The Energy Performance Certificate (EPC), which gives an assessment of a property's energy efficiency and environmental impact. Your home will be rated on a scale of A-G, with an A indicating the highest level of energy efficient/the lowest level of environmental impact. The EPC also provides advice on improving the rating for a property – such as adding more loft insulation or switching to energy efficient appliances. These will usually lower utility bills as well as making a property more green, making the property more attractive to potential buyers.
• A Sale Statement providing the address of the property for sale, the ownership (whether the property is freehold, leasehold or commonhold), whether the property is registered or unregistered, and whether or not the property is being sold with vacant possession (i.e. the current occupants will move out prior to completion of the sale).
• Local enquiries, searches of the local land charges register and of council records relating to the property covering planning decisions and road building proposals.
• Details of drainage and water services to the property.
• Evidence of title – proof that the seller is the owner of the property and is legally in a position to sell it. If the property is registered, official copies of the property register, proprietorship register, charges register and a copy of the title plan must be obtained from the Land Registry.

A HIP may also include the following optional items:

• A Home Condition Report (HCR) accurately detailing the physical state of the property.
• A legal summary of the content of the HIP. Useful to buyers but not a substitute for seeking impartial legal advice.
• Home use and home contents forms, with information about access to and use of the property, often by the wider community. For example, information on boundaries, services, sharing land/access with neighbours. "Home contents" refers to fixtures, fittings and items in the property and whether they are included in or excluded from the sale, or are subject to negotiation.
• Other documents may be included which are specific to the type of property or the area. For example, evidence of subsidence in an area of coal mining, or property-specific likelihood of flooding within a flood-risk zone. Other issues covered might include rights of way, ground stability and environmental hazards.