What Exactly is a HIP Home Condition Report?

This volunteered report derives in part from the profession home surveyor reports "Level 2" inspection, and provides similar information to that which is usually detailed in the RICs Homebuyer Survey & Valuation report, usually referred to as HSV. In detail the report spans between a typical mortgage valuation report (Level 1) and the much more specific Building Survey, which examines full structural details.

The template for the report is standard, but allowing flexibility to differentiate between the full ranges of different sized properties, from the most modest studio flat to the largest of country mansions.

The benefit of producing the report to the seller is to make the property more saleable by providing a "clean bill of health" and instilling confidence in the buyer that the property is completely sound. This in turn should accelerate the selling process and make it less likely that the transaction will fail.

These objective reports, which must be accurate, clearly written and comprehensible to any homebuyer, will be compiled by registered Home Inspectors, who must be suitably insured and have certification from an approved Government Certification Scheme.

The Home Condition Report will Comprise Several Sections – A-H.

Section A will contain the following information:

Details of the actual terms of engagement as appears on the mandatory instructions letter sent out to the client.
The ratings of the condition of the property, with the main points highlighted so as to avoid detailed scrutiny of the report in order to locate the most important information.
Details of which parts of the property will be included in the inspection, and also any areas not subject to required inspection.

Section B will contain the following information:

Details of general information regarding the property, including size, age, the amount of accommodation available and details of construction.
An overall opinion of the general state of the property.
Reconfirmation of the actual condition ratings, which will be extracted from the full body of the report.

Section C will contain the following information:

Highlighting of any matters which may be of concern and need to be considered during the conveyancing process.
Details of any environmental issues that should be investigated further.
Details of any health and safety risks that should be pointed out to the buyer.
Advice on matters which may require further legal investigation, including issues involving rights of way, forthcoming projects such as highway construction, any planning consents required, listed building or conservation obligations.
Any other issues which may affect the property, such as likelihood of flooding.

Section D will contain the following information:

Detailed report on the condition of the exterior of the building (includes exterior doors and windows, outer walls, roof, drainpipes and guttering, all external decoration and woodwork).

Section E will contain the following information:

Detailed report on the condition of the interior of the building (includes internal walls, windows, woodwork, built in units).

Section F will contain the following information:

Details of services utilised in the property, including water, gas and electricity.

Section G will contain the following information:

Details of boundary walls, grounds, fences and any outbuildings.

Section H will contain the following information:

A full report on the energy rated performance of the property.

A suitable rating will be given on each section of the examination, which must also be justified. Any unsatisfactory elements highlighted in the report must be described in detail, and any serious defects must be pinpointed.

With regard to the energy performance rating (Section H), this must meet the requirements as laid down by the 2002 European Directive on the Energy Performance of Buildings. Once this information has been submitted, the data will be supplied to an approved Government energy rating software organisation, which will generate the correct rating for the property. This data will also be used to assess any improvements that may be made in order to deliver more energy efficiency in the home.