The Conservatives claim that HIPs are responsible for reducing the number of properties coming onto the market - indeed, they were a worthy scapegoat for the stock shortages in 2009 which forced up prices and lead to much frustration for agents and buyers. However, in the last few months, there has been a significant increase in instructions, with buyers having a wider choice of properties which in turn is slowing purchase decisions. Given this, we’d be interested in how the Conservatives can explain this, as they appear unshakeable in their opinion that HIPs have strangled instructions levels and must be eliminated. As the more likely explanation is the cyclical nature of the market, the opposition may need to find another justification for the unemployment they will create by their “Baby-and-Bathwater” approach to HIPs.
EPC on newbuilds
There is confusion over whether a standard Energy Performance Certificate (EPC) can be used on properties completed since April 2008. Since January 2006, all new developments need an EPC based on a complete Standard Assessment Procedure (SAP) report, which are usually produced by the developer or architect. Upon completion of the building, an On-Construction EPC (OCEPC) is needed to be validated by building control officers to sign off on building regulations. Given that there are circumstances where these final reports have not been produced, for example, a developer has gone into receivership, this makes the sale of the property difficult without the final report. Many thought a standard EPC (using a reduced version of the SAP calculations) could be used on the property once complete. However, this is not the case and standard EPCs cannot be used on any property completed after April 2008 - the full SAP report must be used. There have been cases where solicitors have refused to exchange because there an appropriate report was not available. A domestic energy assessor may lose their licence by producing an EPC on a property that should have full inspection, and is unlikely to be insured to produce the report.
Clarification on HIP exemptions
We have found agents disagreeing with one another over the exemption of a property requiring a HIP. In one case, one agent attempted to undermine the credibility of another by telling a prospective seller they had been mis-sold a HIP when one wasn’t needed, when actually the case was not clear-cut. This is quite a common occurrence when considering properties with over five hectares (~12.5 acres) of land. Just because a property has more than five hectares, does not automatically mean it is exempt, as the primary use of the land must meet one of the following three criteria;
- Horticulture or cultivation
- Breeding or keeping of animals
- As grazing lands or woodlands
The full details of the law is available through our online HIPKnowledge and can be downloaded by clicking here:
http://www.thepartnershiplimited.com/Documents/HomeInformationPackRegulations-AcreageExemptions.pdf
Partnership conveyancing goes from strength to strength
The feedback on our new interactive conveyancing service has been overwhelmingly positive, with agents being delighted with our trademark communication expertise helping them complete complex deals more quickly than traditional solicitors. We have approximately 50 cases underway and are always interested in referrals; we will be announcing an incentive scheme later this month, with a monthly raffle for a case of wine for agents that refer potential clients to us, irrespective of whether we are instructed or not.
