The Government introduced the packs in order to reduce the increasing number of failed home sales. Under previous legislation, much of the information required by the buyer was only available after the offer to purchase had been tendered. This meant that any problems regarding the condition of the property or legitimacy of any documents provided, was not revealed until actual costs had already been incurred. Often this led to the need to completely renegotiate the terms of the sale, lengthy delays in the contract exchange process and the eventual failure of many transactions.
It was therefore deemed necessary to reduce the enormous amount of money and resources wasted on the failure of so many potential home purchases, including expenses predominantly incurred by the intended buyer on excessive legal fees, searches and disruptions to mortgages, which subsequently led to eventual withdrawal from the transaction when unsatisfactory factors were revealed. In providing this essential information at the outset of the selling process, the Government’s intention was to accelerate the whole procedure of house purchase by reducing waste in time and financial resources and to thereby drastically cut the number of failed home sales.
It was estimated that previously around £1000,000 a day was being lost on these types of transactions, which subsequently failed.
Energy Performance Certificates tell you how energy efficient a home is on a scale of A-G. The most efficient homes - which should have the lowest fuel bills - are in band A.
The Certificate also tells you, on a scale of A-G, about the impact the home has on the environment. Better-rated homes should have less impact through carbon dioxide (CO2) emissions.
The Certificate includes recommendations on ways to improve the home's energy efficiency to save you money and help the environment.
You do NOT need a Home Information Pack for:
From October 2008 an Energy Performance Certificate will be required for properties being marketed to let. The Energy Performance Certificate is valid for 10 years There is no need to provide a certificate for a property with an existing tenant. Land lord are not obliged to carry out any of the recommendations but the tenants will consider the energy performance results when choosing a property. Both landlord and tenants may be eligible for grants to improve the energy efficiency of the home. Click here to order an Energy Performance Certificate for your rental property.
Section 149 of the Housing Act 2004 provides that a property is put on the market when the fact that it is available for sale is made public. A fact is made public 'when it is advertised or otherwise communicated (in whatever form and by whatever means) to the public or to a section of the public'. Communication of availability for sale by word of mouth is therefore caught, and counts as marketing.
One-to-one sales that don't involve any other person and do not involve marketing to a 'section of the public' are not caught by the legislation. But section 159 of the Housing Act 2004 provides that where someone acting as an estate agent introduces a seller to a buyer as part of a business, that is treated as a 'qualifying action' which triggers the HIP duties. This means that the HIP duties will usually be triggered where an estate agent, as part of his business, arranges "informal viewings" of a property that is available for sale, or communicates this availability by any means to any one as part of an attempt to sell it.
Untill the property is sold, and if taken of the market for less than one year and then re-marketed, the same pack may be used.
Marketing of your property can commence as soon as the Home Information Pack is complete.