How long is a HIP valid for and do they ever expire?
This issue appears to arise from confusion over the age and validity of local authority searches contained within a HIP. Since many mortgage lenders only accept searches that are up to six months old, it is assumed that the HIP will expire within the same timeframe. However, there is no expiry date for a HIP while you stay on the market, and no obligation on either the seller or the agent to update the information contained within it. If you take your property off the market you can re-use the same HIP as long as you go back on the market within 12 months.
Is a HIP required on change of agents?
If a property was already on the market before HIPs were introduced and the client switches to a new agent, then as long as there has been no break in marketing, a HIP is not required. And, if a HIP already exists, a client may take the property off the market for up to a year, with no obligation to update the information.
Are agents responsible for ensuring the accuracy of the entire HIP?
Agents are only responsible for the checking and accuracy of the sale statement and the index. But, given that the index should show which documents have been included in the HIP, the agent should check that those documents are actually present.
Which properties need a HIP?
Only properties that were marketed after the start of HIPs will actually need one – it is unnecessary to produce a HIP for properties that were put on the market before their introduction. While there have been rumours of a ‘drop dead date’ when existing properties will need a HIP, this date has not been set yet.
Can a property be marketed before the HIP is complete?
A property can be marketed without a complete HIP providing proof is available the HIP has been commissioned.
Must agents provide printed copies of HIP documents?
With most HIP’s extending to around 60 pages, we do not tend to print off copies. Access to each HIP is available via the web-link which can be found on the sales particulars and our website.
Is a HIP required if a property is being converted or demolished?
If a property has been converted from one use to another, such as a barn conversion, a HIP is required. However, a HIP is not required if planning permission has been granted to redevelop a property and it is being marketed as being for development purposes and it is unsuitable for habitation.
Why is the floor area in an Energy Performance Certificate often less that an agent’s floorplan calculation?
The floor area calculation included in the EPC is based on the area of the property that is heated and is not separated from the main property by an external wall or external-type doors in a conservatory. This inevitably means that floor areas in the EPC will be less than those based on the area of the entire property.
How are the fuel cost estimates calculated in an EPC?
These are statistical estimates based on average use and consumption and may not reflect accurate usage and bills.
Would a Conservative Government scrap HIPs?
This is one if the most common and most difficult questions we are asked and the only one for which our response is based purely on our opinion. While the Opposition has publicly stated its commitment to scrapping HIPs, it has also stated that it believes in the idea of getting title and search documentation in advance, and supports the use of Energy Performance Certificates.
It also acknowledges that there have been some benefits in the introduction of HIPs, so it is no longer clear that the party will scrap the idea completely. Rather that it may review elements of its implementation.
Myles Tydeman
Managing Director
