The Government introduced Home Information Packs (HIPs) to improve the process of buying and selling a home.  The packs were phased in from August 2007 and since December 2007 all residential property for sale in England and Wales need one. 

On 1 October 2008, the requirement for an EPC was extended to all new tenancy agreements on rental properties (an EPC will not be required for an existing tenancy).  Once obtained, the certificate can remain valid for up to 10 years, provided the energy performance of the building is not signifcantly altered, where improvements are made it is recommended that the property be re-assessed. 

What does a HIP contain?
Each HIP must contain the following documents:

• An index (i.e. a list of the contents of the Pack)
• An Energy Performance Certificate (EPC)
• A sale statement (summarising the terms of the sale)
• Evidence of title
• Standard searches (i.e. local authority enquiries and a drainage and water search)
• Where appropriate, commonhold information (including a copy of the commonhold community statement)
• Where appropriate, leasehold information (including a copy of the lease, information on service charges and insurance)
• A Home Condition Report (on a voluntary basis)

Other authorised documents can also be included, such as guarantees and warranties or other searches.

 

The Energy Performance Certificate is also required under the EU Energy Performance in Buildings Directive.  The EPC is the output from an energy assessment of the property and displays 2 ratings - the first showing the home’s energy efficiency and the second its environmental impact.  Both ratings are on a scale from A – G (A being the most efficient rating) as shown in the example above. The certificate also offers advice on how to reduce carbon emission and save energy around the home.  If advice is followed it is estimated that homeowners can cut energy costs by an average of up to £300 per year!