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Home Information Packs

To speed up the home buying process and reduce the risk of gazumping (where the vendor agrees a price with a buyer and then sells to another buyer for a higher price), the government has introduced a new law requiring vendors to produce a Home Information Pack (HIP) − commonly called a ‘sellers’ pack’ − before putting a property on the market. It’s hoped that the HIP will reduce the time it takes to sell a property from up to 12 weeks to one or two weeks (although few believe it). However, it won’t be compulsory until 1st August 2007 (or even later), and will only affect homeowners selling a four-bedroom or larger property.

The seller’s pack will be compiled by estate agents on behalf of sellers at a cost of between £300 and £1,000 – depending on a property’s size, location and history – and will contain the following:

• Ownership details and title deeds;
• Details of any guarantees and warranties in force;
• Details of any relevant planning or listed building regulations;
• A condition survey report (costing around £350), including an energy efficiency assessment;
• Results of Land Registry, local council and utility searches;
• Terms of sale.

Leasehold properties will also require details of the lease, landlord or managing company details, service charges, ground rent, insurance, regulations and any current or planned work.

Many analysts and experts believe that home information packs will slow the market, as some sellers will be deterred by the cost of putting a home on the market and the negative aspects that may be brought to light by the survey, and buyers may be put off by any negative points in the survey (however minor). Fears have also been raised that both buyers and lenders won’t trust the condition survey commissioned by the vendor, who could bribe an inspector to overlook certain matters, and many people may still commission their own surveys. The inspection won’t need to be performed by a surveyor, but by a new breed of specially trained home inspectors (although around half are expected to be qualified surveyors). For further information, see www.odpm.gov.uk/homeinformationpacks.

The British government refused to introduce a deposit system, as employed throughout most of the civilised world, which would virtually eradicate gazumping – the main problem the sellers’ pack was supposed to address.

© Survival Books Limited 2006

“Buying or Renting a Home in London” 1st Edition, David Hampshire and Sue Harris.
Reproduced with the permission of Survival Books Limited.

Further information on this topic can be found in “Buying or Renting a Home in London” 1st edition, by David Hampshire and Sue Harris.

For extensive, annually updated information about buying or renting a property in London, you can purchase this book at www.survivalbooks.net

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