HIP DOCTOR

You can't leave the HIP until later; you need a HIP before you can market. Perhaps because they were phased in gradually during 2007, and for awhile could proceed merely upon paying for your HIP, there has been quite a bit of confusion over which properties need them and which don't, and when, but since December 2007 all residential property sales in England and Wales now require one.

Since 6th April, you must wait to market your property until a HIP containing the mandatory components is available.

Putting it another way, a vendor or an agent can not market a home until a HIP is available. The HIP must contain a minimum set of components, including the Index, Property Information Questionnaire, EPC, Sale Statement and title documents. The local searches are permitted to follow at a later date.

You don’t need to worry about putting the HIP together yourself; PSG is on hand to prepare your HIP for you. We have the experience, local knowledge and expertise to do a quality job quickly and efficiently.

Don't panic, as long as you haven't marketed the property this is considered a private sale and you don't need a HIP.

As you are probably aware, HIPs are required for all residential property sales in England and Wales, but only if the property is marketed. You should be careful, however, because ‘marketing’ doesn’t just mean professional marketing through an estate agent. You are considered to be marketing a property if you advertise your house in your local newspaper, put your own board up outside or even stick a card in a newsagent’s window. You may think you are saving yourself some additional costs by not having a HIP but some of the content will still be required by the buyers. A solicitor acting for the buyers will want to see local authority searches regarding planning applications, for example, and evidence of title (confirming that the property belongs to you). So check early on that your solicitor is sourcing the relevant documentation otherwise you could certainly delay the sale unnecessarily.

Energy efficiency was not a consideration when the Victorians built these houses and potential buyers will not expect miracles. By including an Energy Performance Certificate (EPC) in the HIP, the government is simply trying to make us think a bit more about energy and how to conserve it.

The certificate rates both the energy efficiency and the environmental impact of your home, on a scale of A to G. Most UK properties fall within bands D and E for both ratings, including many in this area. In fact, according to current figures, the average energy rating for a four-bedroom house is reported to be an E. Each rating takes into account the age, location, size and condition of the building and makes recommendations on where improvements in energy efficiency can be made. So your energy report, if typical, will not be glaringly different from other houses of its type and you therefore have no need to worry.

Once you have your report, you may decide to make some improvements to your property before you market it - but be reassured the EPC doesn't fail a property it is designed to give you and potential buyers a guide to its energy efficiency.

This is a good question because different rules apply to new builds and conversions; they have their own rules so far as HIPs are concerned. Your conversion comes under the category of buildings that have been materially altered or changed, which does not fall under the same building regulations as existing homes.

But, like all homes marketed for sale it will now need a HIP.

You would also need a HIP if you decided to demolish the current buildings and build from scratch rather than convert and market the property ‘off plan’. Instead of the usual Energy Performance Certificate, your HIP would include a Predicted Energy Assessment (PEA) and there could be other differences in the Title documents too. As what you describe is a conversion, however, all you need to know is that yes, it does need a HIP.

HIPs have certainly caused some controversy since their phased introduction in 2007, and a big part of this was down to the government's decision not to include a structural survey as a compulsory element of the pack after all.

The idea behind the HIP is that it provides information that both parties need at the start of the home-buying process, to help make the transaction more efficient. Since December 2007every home that is marketed for sale must have a HIP that includes certain documents as a minimum, and this has changed again from April, 2009.
Currently, these are:

• An index (list of pack contents);
• Property Information Questionnaire (PIQ),
• An Energy Performance Certificate (detailing energy efficiency of the property);
• A sale statement (outlining the terms of the sale);
• Evidence of title (confirming ownership);
• Local authority searches, drainage search and documentation confirming leaseholds, etc. if relevant.

You can choose to include other elements such as the home condition report (property survey); guarantees (such as damp course proofing); and a legal summary.

But don’t worry; an experienced organisation like the Property Search Group will compile the HIP on your behalf to ensure that all your obligations for the HIP are met.

As you know, HIPs were phased in at the end of 2007 and are now required for all residential properties being marketed for sale. The idea behind HIPs is that they should help make the process of a private home owner selling their private home more straightforward because key documents are provided at the start of the process.

This means that tenanted properties are excluded because they are not the private homes of the seller, they are the homes of the tenants, and so do not need a HIP.

There are other exceptions to the HIP requirement: non-residential and commercial properties (or those that are partly residential and partly commercial, like a shop with flats above); holiday homes, private sales (where the property is not marketed but sold to a friend, for example); properties marked out for demolition (because they are uninhabitable); portfolios of properties (where several homes are sold in one batch).

So, no, you do not need a HIP for the sale of your tenanted property.

I'm glad you used the words - 'shopping around' as there are plenty of newcomers with little industry experience offering HIPs at rock bottom prices. Like every other type of purchase - with HIPs, you get what you pay for!
Choose your HIP provider with care. Make sure that they are members of the Property Codes Compliance Board (PCCB), which means they will have committed to a strict code of conduct and are forced to comply with legislation and a strict set of quality standards. Visit www.propertycodes.org.ukto find out. Read the small print and make sure you know what you are buying.

Your Energy Inspector should also be a registered member of one of the accredited bodies and carefully check their ID to make sure they are who they say they are. Also, check they have enough PI insurance to cover your home if the HIP does turn out to be faulty and opt for experienced, knowledgeable staff who knows your area and local council. Finally, if you are using an estate agent, they will be working with HIP providers to produce the HIP - so make sure you ask them who this is to ensure they are dealing with a reputable organisation that has experience in this area. If you’re still not sure who to turn to, call PSG and we may be able to recommend an agent in your area.

PSG is a member of the PCCB and fully subscribes to both the Search Code and HIP Code, giving you confidence that your HIP is fully compliant and produced by one of the UK's leading providers.

I compare a HIP to a logbook for a car.

It is a collection of information about the status and history of a property to enable a buyer to make an informed choice from the outset.

Formerly, buyers learned these things about a property much further down the line and this often led to the collapse of many sales/chains.

A mandatory basic HIP comprises:

• Index
• Energy PerformanceCertificate (EPC)
• Sales Statement
• Evidence of title
• Local Authority Searches
• Water and Drainage Searches

A key factor in a HIP is the Energy Performance Certificate (EPC), which tells the buyer how energy/carbon efficient your home is and makes recommendations for improvements.

After 31st May 2008, you will need to produce a HIP before you put your house on the market, until then, you only need have commissioned one.

The more information you choose to include in your HIP at the outset, the more likely your buyer will be in a position to make a genuine and realistic offer.

I like to view a HIP as a kind of logbook. You wouldn't dream of only presenting half the service history for a car or retaining receipts for work carried out, so why wouldn’t you include the maximum possible amount of information in a HIP?

A HIP with these additional items may be more attractive to potential buyers and lead to a better price agreed for the sale.

Additional items to your HIP may include:

• Home condition report
• Environmental report
• Copies of guarantees for work done (such as a damp proof course etc.)
• Planning permissions

By adding these items to your HIP at the outset for a little extra cost, it may deliver huge potential savings in terms of time and hassle in the long run. There is no doubt that the longer a sale process goes on, the more likely it is to collapse.

It is likely your buyer's solicitor will want to see some of these things anyway and if your buyer is forced to commission them, it may take longer. There has been plenty of controversy over the inclusion of a home condition report. A reputable surveyor will report what they see, NOT what the vendor wants them to see.

A Home Condition Report may reveal problems with a home, and costs for repairs, that could affect the whole sale of the property. Alternatively, and report could give a property a good, positive result that only strengthens a purchasers' determination to make a good offer.

Yes. Since the beginning of April 2008, all new build properties require a HIP before they can be marketed, even if these are being offered 'off plan'. The developer will need a Predicted Energy Assessment (PEA). This is based on calculations made by the architects and designers working on the property and the expected energy performance of their designs.

They will base their calculations on use of the latest building methods and materials. When the property is complete, it will be assessed again and any recommendations for improvements may be given. The new assessment will take the form of an Energy Performance Certificate, with the usual coloured bar chart rating.

It is worth noting that until this final rating is given, the local council’s Building Control Department will not be able to give a completion certificate to the property.

No, HIPs only apply to residential properties being marketed for sale, however, from 31st October 2008, a valid Energy Performance Certificate (EPC) will have to be made available by all landlords to new prospective tenants. Tenants will be able to assess how energy efficient a property is and calculate more accurately what the running costs will be. The most efficient homes will usually have the lowest fuel bills and receive ratings in bands A or B. The Certificate also tells you on a scale of A - G, the impact the home has on the environment. Better-rated homes emit lower carbon dioxide (CO2) levels. Average properties in the UK tend to fall into D - E for both ratings. It will include recommendations on ways a landlord might improve the home's energy efficiency, which might provide you with a useful bargaining tool.

I'm afraid so. I have outlined the deadlines below to help you work out which bracket your property falls into, but after these deadlines, any commercial property placed on the market for sale, lease or rent in England and Wales requires an energy inspection by an Energy Assessor and an Energy Performance Certificate (EPC).

The type of EPC varies according to a property's size and principal use. Therefore, you will need to check very carefully that an appropriately qualified commercial energy assessor carries out the assessment. There are different qualifications for assessors of different types and sizes of properties. Check that whoever assesses your property is actually qualified to do so!

Government Deadlines for EPCs:

6th April 2008
Sale or rent of commercial buildings with a floor area over 10,000 m2.

1st July 2008
Sale or rent of commercial buildings with a floor area over 2,500 m2.

1st October 2008
An EPC will be required on the construction, sale and rent of all remaining commercial property.