Greener ratings to benefit all home Buyers.
First time homebuyers will see their upfront costs drop and all home buyers will, for the first time, receive A-G green ratings for their properties which will help cut fuel bills and carbon emissions, with the roll out of Home Information Packs (HIPS) and Energy Performance Certifcates (EPCs) announced on the 22nd November 2007.
Buyers whose homes score poor energy ratings of F or G (currently around one fifth of all homes) will receive an offer of a discount or free help with energy efficiency measures from the Green Homes Service which will be established, helping to save hundreds of pounds off fuel bills, as announced by the Prime Minister this week.
Sixty per cent of the market is already covered by HIPS. The government has announced the rollout of HIPS and EPCs to the rest of the market from 14 December this year, as the criteria set out for roll our on 11 June have now been met.
House hunters will get detailed information about the energy efficiency of their home with a green rating of A-G, similar to consumer friendly fridge ratings, in the EPC.
The final stage of the rollout follows careful analysis of how HIPs and EPCs have been working in order to maintain their smooth introduction into the housing market.
The extension of HIPs to all properties will particularly benefit first time buyers through a reduction in their upfront costs by not having to pay for the pack, helping them get a foot on the housing ladder.
The packs are already beginning to bring benefits to consumers with average property search costs starting to fall with the new competition from HIPS
New Builds and Developments
New Builds homes are affected by HIPs but there are differences in the way the scheme operates for these properties, particularly in the way that the energy performance information is presented.
Sales of homes built to the most recent Bulding Regulations (Regulation 17C, Part L, 2006) are currently exempt from the need to have a HIP under the commencement orders issues so far. The current intention is to bring these within the scope of the HIPs scheme on 6 April 2008 (The date on which EPC's will required on construction for all dwellings).
New homes built under the pre-2006 Building Regulations are not exempt and will require a HIP. New homes marketed "off plan" before they are physically completed will not have a full Energy Performance Certificate(EPC) as these can only be produced following a physical inspection of a completed building. In these cases, the HIP will contain a Predicted Energy Assessment(PEA).
Buildings that have been materially altered or changed would not be classified as a new build as they are not covered by Regulation 17C of the Building Regulations. This means that conversions are not excluded from the HIP duties.
Where new homes are marketed "off plan" there are likely to be differences between HIPs for these sales and those provided for properties sold as completed dwellings. For example, the searches for the property and title information may cover a wider area if the property has not yet been allocated an address and individual titles have not yet been created.
You can obtain a PEA by clicking the link below
http://www.homeinformationpack.gov.uk/pdf/Predicted_Energy_Assessment.xls
Leasehold Properties.
The Government have announced as of the 14th December 2007, only the Lease will be compulsory within a leasehold HIP all other information which until this date was required are no longer mandatory. This information will now become authorised.
INFORMATION FOR ESTATE AGENTS.
Who needs a Pack?
Home Information Packs are needed for all homes put on the market on or after the 14th December 2007.
Whoever is marketing the property is responsible for ensuring a valid pack is available. In most cases, the will be either the seller or their estate agent.
Can you still market a property without a Pack?
Homes can be put on the market without a pack, providing all the necessary documents have been requested and paid for, or a commitment to pay for them has been made. The documents should be made available within 28 days.
Who can see the Pack?
Any potential buyers are entitled to receive a copy of the pack, or any part of it, if they request it, if they request it they should receive it within 14 days.
There is no charge for this, but you can ask buyers to pay a charge to cover copying and postage. The does not apply to electronic copies.
Sellers should see the pack for their own home - to ensure it is accurate, and any other estate agents they have instructed should also have access.
HIP Exceptions
Home Information Pack duties have applied to all residential properties in England and Wales marketed since 14th December 2007. The vast majority of sales of residential properties will be subject to these duties, but there are some exceptions.
Exceptions are intended to ensure that sales that are not part of the 'standard' housing market are unaffected by the HIP duties commenced. There is also a temporary exemption from the duty to have a pack in place before marketing begins but only where the required documents have been requested.
Seasonal and holiday accommodation:
There is no requirement to provide a HIP where there is a planning restriction which either limits the occupancy of the property to 11 months or less in a 12 month period, or limits the use of the property to holiday accommodation.
Mixed Sales
The duty to have a HIP does not apply to a 'mixed sale'. This applies where a residential property is marketed for sale as 'ancillary' to (i.e intended to be occupied and enjoyed with) one or more other buildings or areas of land used for non-residential purpose. Examples of mixed sales include a farm house sold with agricultural land and buildings, or a property consisting of a shop on one floor and flat above it. The exception for a mixed sale only applies if at the time of first marketing, the marketing material makes it clear to potential buyers that the seller only intends to accept an offer for the property as one lot.
Dual use of a dwelling/house
The HIP duties do not apply to properties that a 'dual use' and can be used for both residential and non-residential purposes simultaneously. An example of dual use would be a house that has been divided and where one part is used as dentist's surgery and the other is the dentist's home.
Portfolios of properties.
Duties to do not apply where one or more residential properties are marketed for sale together if the seller does not intend to accept a sale in isolation from the others, and it is clear from marketing materials that offers will only be accepted for the complete portfolio.
Unsafe properties
A HIP is not required when marketing an unoccupied property intended for demolition and redevelopment. This applies where the relevant planning permission has been obtained.
Park Homes.
Park homes are not treated as 'dwelling houses' under the terms of housing legislation and therefore fall outside the scope of the HIP regulations.
New Builds.
New Built homes are affected by HIPs but there are differences in the way the scheme operates for these properties, particlarly in the way that energy performance information is prestented.
Buildings that have been materially altered or changed would not be classified as new build as they are not covered by Regulation 17C of the Building Regulations. This means that conversions are not excluded from the Hip Duties.
when new homes are marketed "off plan" there are likely to be differences between HIPs for these sales and those provided for properities sold as complete dwellings. For example, the searches for the property and title information may cover a wider area if the property has not yet been allocated an address and invdividual titles have not been created.
Code for Susainable Homes - the Nil-rated Certificate
The Code for Sustainable Homes (the code) is an assessment and rating system for new homes. It aims to improve the overall sustainablility of new homes by estabilshing a single national framework within which the home building industry can design and construct home to higher evniromental standards.
It is not complusory for every new home to be built to the Code. However, from the 1st May 2008 it will be compulsory for every new home in England to havea rating against the Code and for information on the rating to be provided to prospective purchasers through the HIP. This rating will make it clear whether the home has been built to the code or not, and if it has, what standard it has achieved.
To facilitate this, from 1st May 2008, the HIP will either have to contain 1( a cerificate (or interim certificate) showing the rating that the home has achieved in respect of the Code or 2) a nil-rated cerificate showing that the home has only been designed to meet current Building Regulations.
When a home has been built to the Code, a Code certificate showing the star rating will be available from the Licensed Code Assessor who carried out the assessment. When the home has not been built to the Code, a nil-rated certificate, provided free of charge here, can be downloaded, completed and included in the Hip.
www.homeinfromationpack.co.uk/pdf/Nil_rated_cert_active.pdf
Buyers Frquently asked Questions
When should I expect to receive a Home Information Pack/Energy Performance Certificate for a property I am intrested om buying/am in the process of buying?
If a property which falls within the scope of the scheme is first placed on the market during the temporary period during which marketing is allowed to start without a HIP, then the HIP must be commissioned and paid for (or arrangement for payment to be made) wiht the expectation that the pack will arrive within 28 days before marketing can begin. During the period, which ends on the 31 December 2008, the EPC must be provided as soon as possible and before exchange of contracts at the lastest.
If a property which falls within the scope of the scheme is first marketed from 1st January 2009 onwards a HIP including the EPC should be available from the time it first placed on the market.
What can I do if the HIP/EPC is not provided?
Except in relation to properties first placed on the market during the temporary period, which ends on the 31 December 2008, which are being marketed without packs, potential buyers have a right to a copy of the pack and this should be provided within 14 Days of request. Sellers are entitled to make a reasonable charge to cover copying and postage cost and may also refuse to provide a copy in certain limited cases. These are where the seller believes that the person making the request:
Can not afford the property
is not really interested in buying the property
is not a person to whom the seller would wish to sell the property (but this does not allow them to unlawfully discriminate against someone)
If you believe that you are being denied a copy of the pack unlawfully, local authority trading standards officers are responsible for enforement of these durties.
Who pays for the pack?
The seller is responsible for the cost of a Home Information Pack. The cost of the Pack is down to the market, but sellers maybe offered by the Estate Agent a defer cost until late in the sale. Some agents may offer free packs, or a no-sale no fee arrangement.