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Do I need a pack?
| Registered Company No. 6506463 | V.A.T. no. 927 6938 72 | Email: info@energyreporter.co.uk | Call (0151) 727 5235 |
Exceptions are intended to ensure that sales that are not part of the ‘standard’ housing
market are unaffected by the need for a HIP, although some apply specifically to properties
which were already on the market when the HIP requirement commenced. There is also a
temporary exemption from the requirement to have a pack in place before marketing begins
but only where the required documents have been requested. Due to this temporary
exemption we are able to provide you with a receipt of payment that allows you to start
marketing your property straight away. Your pack will then be provided by us within the
required 28 days (however in practice most of our packs are completed with 2 weeks).
Exemptions
Properties marketed before the commencement dates:
There is special provision for excluding properties marketed before HIP duties came into force
for a particular category of property:
1 Aug 2007 — sales of homes with four or more bedrooms
10 Sep 2007 — sales of homes with three or more bedrooms
14 Dec 2007 — sales of homes with one or two bedrooms
Properties put on the market before the commencement dates will not need to produce a HIP.
A date may be set when all properties that remain on the market will be required to have a HIP.
Residential properties not available for sale with vacant possession:
Under section 160(1) of the Housing Act the HIP duties "do not apply in relation to a
residential property at any time when it is not available for sale with vacant possession".
Under subsection (2), a property shall be presumed to be available with vacant possession if
it is actually available with vacant possession "unless the contrary appears from the manner
in which the property is being marketed". If a property is being marketed with a sitting tenant -
so that the property will be sold with the tenant in place - HIP duties would not apply. If,
however, the marketing was on the basis that the tenancy will be terminated and the buyer
given vacant possession by the time the sale is completed, then the HIP duties would apply.
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. is intended to be occupied and enjoyed
with) one or more other buildings or areas of land used for non-residential purposes.
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 a 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 have 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 a dentist’s surgery and the other
part serves as the dentist’s home.
Portfolios of properties:
Duties 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 that is unsafe, posing a serious
risk to the health and safety of potential occupants and visitors, and this is made clear in the
marketing material.
Properties due to be demolished:
A HIP is not required when marketing a 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:
Although sales of homes built to the most recent Building Regulations (Regulation 17C, Part
L, 2006) are currently exempt from the need to have a HIP, this is set to change later in 2008.
For more detailed information on new builds, click here
market are unaffected by the need for a HIP, although some apply specifically to properties
which were already on the market when the HIP requirement commenced. There is also a
temporary exemption from the requirement to have a pack in place before marketing begins
but only where the required documents have been requested. Due to this temporary
exemption we are able to provide you with a receipt of payment that allows you to start
marketing your property straight away. Your pack will then be provided by us within the
required 28 days (however in practice most of our packs are completed with 2 weeks).
Exemptions
Properties marketed before the commencement dates:
There is special provision for excluding properties marketed before HIP duties came into force
for a particular category of property:
1 Aug 2007 — sales of homes with four or more bedrooms
10 Sep 2007 — sales of homes with three or more bedrooms
14 Dec 2007 — sales of homes with one or two bedrooms
Properties put on the market before the commencement dates will not need to produce a HIP.
A date may be set when all properties that remain on the market will be required to have a HIP.
Residential properties not available for sale with vacant possession:
Under section 160(1) of the Housing Act the HIP duties "do not apply in relation to a
residential property at any time when it is not available for sale with vacant possession".
Under subsection (2), a property shall be presumed to be available with vacant possession if
it is actually available with vacant possession "unless the contrary appears from the manner
in which the property is being marketed". If a property is being marketed with a sitting tenant -
so that the property will be sold with the tenant in place - HIP duties would not apply. If,
however, the marketing was on the basis that the tenancy will be terminated and the buyer
given vacant possession by the time the sale is completed, then the HIP duties would apply.
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. is intended to be occupied and enjoyed
with) one or more other buildings or areas of land used for non-residential purposes.
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 a 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 have 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 a dentist’s surgery and the other
part serves as the dentist’s home.
Portfolios of properties:
Duties 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 that is unsafe, posing a serious
risk to the health and safety of potential occupants and visitors, and this is made clear in the
marketing material.
Properties due to be demolished:
A HIP is not required when marketing a 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:
Although sales of homes built to the most recent Building Regulations (Regulation 17C, Part
L, 2006) are currently exempt from the need to have a HIP, this is set to change later in 2008.
For more detailed information on new builds, click here
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| Energyreporter Ltd is registered with the PCCB as a subscriber to the HIPcode |