UK Home Information Packs - update

The trials which are beginning shortly will enable the reaction of both buyers and sellers to the packs to be tested on the ground in the run up to mandatory Energy Performance Certificates and Home Information Packs being introduced for all residential sales on 1 June 2007.
As part of the trials there will also be a range of incentives including a limited number of free packs; and packs available at a reduced cost for homeowners who want to try them out.
Housing Minister Yvette Cooper said: “We need to work together to tackle climate change. Twenty-seven per cent of carbon emissions come from our homes and it’s only right homeowners should have information on the energy efficiency of their houses. Residents who want to take part in the trials will be amongst the first to have these facts at their fingertips.
“Home Information Packs have the potential to speed up the home-buying and selling process by providing up-front information to potential buyers. It’s vital that we test them properly 'on the ground' so consumers get the best product possible.”

BACKGROUND NOTES ON HOME INFORMATION PACKS

1. Home Information Packs
   The Government is introducing Home Information Packs in England and Wales on 1June 2007 and anyone selling a property must provide potential buyers with a Pack. Every Pack will include an Energy Performance Certificate. The Packs will also include information such as searches and other legal documents. A Home Condition Report giving details on the condition of a property can also be included in the Packs on a voluntary basis.


2. Energy Performance Certificates
   An Energy Performance Certificate will provide buyers and sellers with A-G ratings on their homes, similar to fridge ratings, as well as a list of practical measures to cut their fuel bills and carbon emissions. By acting on the recommendations listed in the Energy Performance Certificate, the average homeowner is expected to save £300 a year on fuel bills and help to reduce the 27% of the UK’s carbon emissions currently generated by our homes.


3. Home Condition Reports
   The Home Condition Report contains information about the physical condition of the property on which sellers, buyers and lenders will be able to rely legally as an objective and authoritative report.
   Sellers who provide a Home Condition Report will have an early opportunity to carry out repair work on the property or obtain quotes prior to marketing. Potential buyers will be made aware of repairs that they might need to make and fund, or they will be reassured that the property is in good condition, in both cases before they decide to put in an offer. Lenders can also benefit by using the reports to inform their valuations, reducing the need to repeat a detailed on site inspection at the buyer’s expense.

The Government believes there will be significant benefits to home sellers from adding a Home Condition Report to their Packs, including greater certainty about sales being completed more quickly.