New Builds & Developments FAQs
Will a newly built home marketed before the 10th September need a HIP?
New homes built under Regulation 17C of the Building Regulations 2000 are exempt from the HIP duties for the time being. Regulation 17C was added in March 2006 and new homes built under the previous Building Regulations are not exempt.
Why are homes built under the 2006 Building Regulations exempt?
Because these properties need to be assessed using SAP (Standard Assessment Procedure) and the EPC software necessary to do this has not been fully developed. Homes build under the pre 2006 building regulations are not exempt and the EPCs for these homes should be produced using RdSAP (Reduced data SAP), but once the SAP software is available and SAP assessors are accredited, SAP can be used to create EPCs for these homes as well.
When will HIPs be required for all newly built homes?
Current assessment is 6 April 2008 (The date on which EPCs will be required on construction for all dwellings.)
What about conversions - a barn being converted into a house for example? (Confirmation from a developer in writing)
Buildings that have been materially altered or changed would not be classified as a new build and are therefore not covered by Regulation 17C. This means that conversions are not excluded from the HIP duties.
How do you deal with the EPC requirements for the sale of a converted property?
If the property is incomplete when marketing begins, the HIP should include a Predicted Energy Assessment (PEA) rather than a full EPC (which can only be produced following a physical inspection of a completed building. The content of the PEA is set out in Schedule 2 of the HIP Regulations. It will look similar to the graphs from a full EPC and will be produced from the design stage SAP 2005 ratings rather than a physical inspection. There is no specified form for the predicted energy assessment but there is a template which can be used to create one on the CLG website.
What about a conversion being marketed as a completed dwelling?
For conversions that are complete when marketed starts, an EPC will be needed and should be produced using the currently available RdSAP (Reduced Data Standard Assessment Procedure) software.
Will a new build sold off plan only need a predicted energy assessment?
In cases where a HIP is required (see above) it should include a predicted energy assessment (PEA) if the property is being marketed off-plan. However, this should be replaced by a full EPC if the home is completed whilst still on the market. If the property is sold whilst still incomplete, there is no requirement for an EPC to be produced.
Where a development of, say, 100 flats is being sold will a single search for the whole development be adequate for the purposes of the HIP, rather than individual searches in respect of each flat?
A search covering the whole development would be acceptable but sellers are recommended to provide individual searches if that would be likely to produce a different result.
If say, 50 houses are being marketed on the same development by the same developer must we produce 50 separate HIPS for each individual plot or can we produce one HIP for the whole of the development which can be passed to the prospective purchaser of any of the plots.
Each property should have its own individual pack. Documents that apply to more than one property can simply be copied across (e.g. searches and evidence of title) but some items, the sale statement for example, can only relate to one property.
Are property searches valid for 1 calendar year?
No. Searches have no defined validity period. Under the HIP regulations, searches cannot be more than 3 months old when marketing begins.
Where a new build sold off plan is then resold once it has been completed. Will it need a new HIP, even though no one has lived in it?
Sales of new homes between developers, say, do not trigger the requirement for a HIP, although if such sales occur after 1 October 2008 they will need an EPC for each of the homes being sold. A sale to someone for owner occupation would require a HIP (if none of the exceptions apply). If that person then sold it on, a further HIP would be required even if the seller had never actually lived in the property.
Where a new home is purchased and immediately put back on the market by someone who bought it as an investment can they reuse the pack given to them by the developer when they bought the property?
The HIP would need a new sale statement as it will be a different seller. Other documents could be recycled provided that they are in date and comply with the regulations. For example, the searches could be reused if they are no more than three months old when marketing begins and confer third party contractual rights on the next buyer and their mortgage lender.
A new build sold as part of a commercial transaction, will it require a HIP?
A pack may be required where a residential property is put on the market for sale to the public or a section of the public - and none of the exceptions in Part 6 of the Home Information Pack Regulations apply. Regulation 30, for example, exempts portfolio sales where two or more properties are sold as one lot and where the marketing makes it clear that bids for individual properties will not be considered.
Can a sale be completed and contracts exchanged in cases where a full HIP does not exist (i.e. a property sold off plan where the buyer is happy with what they see and do not want to wait for a partial HIP?)
If the property is marketed it will need a HIP. If the HIP is incomplete at this stage for some reason, the HIP duties would cease when marketing stops so the buyer could agree not to proceed with it. However an EPC will still need to be given to the buyer if the building is completed before exchange of contracts, even though marketing has stopped.
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