New builds and developments
- Newly built homes are affected by HIPs but there are differences in the way the scheme operates for these properties, particularly in the way that energy performance information is presented.
- New homes marketed "off-plan" before they are physically complete will not have a full Energy Performance Certificate (EPC) as these can only produced following a physical inspection of a completed building. In these cases, the HIP will contain a Predicted Energy Assessment (PEA).
- 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.
Code for Sustainable Homes - the Nil-rated Certificate
Background
The Code for Sustainable Homes (the Code) is an assessment and rating system for new homes. It aims to improve the overall sustainability of new homes by establishing a single national framework within which the home building industry can design and construct homes to higher environmental standards.
It is not compulsory for every new home to be built to the Code. However, from 1 May 2008 it will be compulsory for every new home in England to have a rating against the Code and for information on this 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 1 May 2008, the HIP will either have to contain i) a certificate (or interim certificate) showing the rating that the home has received in respect of the Code or ii) a nil-rated certificate showing that the home has only been designed to meet current Building Regulations.
Where 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. Where the home has not been built to the Code, the nil-rated certificate, provided free of charge here, can be downloaded, completed and included in the HIP.
Guide to Completing the Nil-rated Certificate
The nil-rated certificate is available to download here in two forms: 1) a locked Word document and 2) a pdf file. There are three areas on the forms that will need to be completed before a certificate can be included in the HIP:
- the address
- the developer's name
- the date the certificate was produced.
An example of a completed certificate is shown here. For those using the Word document you will be able to carry out normal Word functions such as mail merging (in the three allowable fields). The pdf file will be amendable but you will not be able to change font sizes etc.
Find out more about the Code for Sustainable Homes on the Communities and Local Government website.
NEW BUILDS AND DEVELOPMENTS - FREQUENTLY ASKED QUESTIONS
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. Click here to be redirected.
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 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.
