The packs contain legal information about the property, as well as an energy efficiency report and a voluntary Home Condition Report.
The scheme was first mooted in the Housing Act of 2004, as a way to cut down the time it takes to purchase property in England and Wales and reduce gazumping.
At present, buying a house takes longer in England and Wales than anywhere else in Europe, and almost a third of offers fail to proceed to completion. These uncompleted sales cost an estimated £350m a year, as they usually occur after potential buyers have spent hundreds of pounds on valuation surveys, legal fees and searches.
HIPs have been broadly welcomed by consumer groups and professional industry bodies such as the Council of Mortgage Lenders, National Association of Estate Agents and the Consumers' Association.
However, the scheme, which was trialled in several areas from November 2006, has recently come in for criticism, not least because the most important part of the pack, the Home Condition Report, is no longer compulsory.
The housing minister, Yvette Cooper, announced that the survey element of the packs would only be included on a voluntary basis. Opponents of the scheme have accused the government of performing a U-turn that has rendered the packs useless.
The HIP now mainly comprises legal documents such as title deeds, searches and the energy efficiency report.
How does the scheme work?
Anyone selling a home will have to compile for the buyer a report on the legal and physical status of the property. The reports are carried out by trained Home Inspectors.
Who are the Home Inspectors?
Most inspectors will already be working in the property market. It is expected that the majority of positions will initially be filled by estate agents and surveyors. Home Inspectors must hold a Diploma in Home Inspection, accredited by the Awarding Body for the Built Environment (ABBE).
What's in a Home Information Pack?
For freehold properties, the HIP will include documents relating to the terms of the sale, evidence of the title, replies to standard enquiries made on behalf of buyers (currently carried out by lawyers), copies of planning, listed building and building regulations consent and approvals.
Packs relating to new properties will contain copies of warranties and guarantees, guarantees for work carried out on the property, replies to local searches.
There will also be information on whether the property is on the register of contaminated land - as is required by the Environmental Protection Act 1990 - or whether searches have been made to ascertain whether the land is contaminated.
The Home Condition Report, which was to offer an objective statement of the property's condition, regardless of effect on value, is not now required. Instead, it is an 'authorised' document, which is to say, it is voluntary.
The pack contains:
An index (i.e. a list of the contents of the Pack) A sale statement (summarising terms of sale) Evidence of title Standard searches (local authority enquiries and a drainage and water search) Energy Performance Certificate 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) For new property, a New Homes Warranty Guarantees, warranties and the HCR are optional.
Who assesses my home for energy efficiency?
The requirement for an Energy Performance Certificate has been set by a European Directive which EU member states must implement.
During the home inspection, the Home Inspector will record the key information that affects the energy efficiency of a property, such as the depth of insulation in the roof and the efficiency of the boiler.The data is entered into a computer programme that calculates the energy efficiency and produces a result on an easy to read scale.
Is anyone exempt from producing a report?
Sellers conducting private sales do not have to produce a report. Nor do vendors of tenanted property not offered with vacant possession and non-residential property.
What happens if search results become out of date?
The results of searches are expected to be accepted for six months. However, if they become out of date after that point there is no obligation to renew them.
What effect will seller's packs have on the property market?
The Council of Mortgage Lenders has criticised the decision to introduce the packs at the height of the property buying season.
It says that one immediate effect will be a glut of homes coming on to the market prior to June 1, and a marked decline in the number of people committing to buying before they can benefit from the introduction of HIPs.
What do the professionals think?
The Royal Institute of Chartered Surveyors is supportive of the packs as they will bring regulation and transparency to an industry that currently has very little.
It is hoped the HIPs will speed up the process of buying and selling, eliminate sellers 'testing the market' and buyers being out bid at the last minute.
The Consumers' Association says its research shows that 82% of adults in England and Wales think the packs would be useful in the home buying process and help to ensure that all relevant information is available upfront for prospective homebuyers. The CA has long been calling for the introduction of HIPs.
But Splinta, a campaign group opposing the introduction of Hips, has called the pilots a waste of money and says the packs are of little value without a home condition report.
The group's Nick Salmon says: "Buyers and lenders are still going to feel they need to carry out their own surveys in order to have peace of mind.
"Nobody in their right mind as a purchaser would take the pack on face value, but would incur their own time and expense in checking out the facts, the local planning department and more importantly in having their own survey."
More information
The official Home Information Pack website.
