There had been government estimates of around £600 but this figure has exceeded the reality because of the reduced requirements in the pack and the fact that few bother to exceed the minimum components.

It is likely to be more expensive for the seller of a new property, an unregistered property or a leasehold flat in a conversion .  Preparing a HIP for both of these is likely to be more expensive than for a registered freehold house. 

The bulk of the cost is for the fees payable for contents such as searches, copy title documents, the Home Condition Report (if included) and the Energy Performance Certificate.

The government hoped that the HIP would be provided free by the property industry.  You will have seen many offers of 'free' HIPs but beware of the small print.  Such offers are usually subject to conditions and payment of a withdrawl fee if you withdraw your property from the market.

In the current market conditions it is unlikely that estate agents will be able to provide completely free HIPs - low volume of sales and falling prices are against this.  

What does the HIP cost the buyer?

The Responsible Person can require a buyer to pay the cost of providing a copy HIP but only if it is required in paper form –an electronic copy will be free.  Some estate agents and sellers may refuse to supply an electronic HIP because of the problems in keeping track of who has one.

In addition to the cost of the copying – not the compilation - of the HIP, the buyer can also be charged for the postage of the HIP.  Payment can be required in advance of a copy being produced.

While buyers cannot be charged for the cost of preparing the HIP, they may end up paying for it in whole or in part in the price of the property.