HIPs – exceptions to the rule

Since 14 December 2007 Home Information Packs have been required by all residential properties in England and Wales, with some exceptions to the rule.

The exceptions apply to sales that are not part of the ‘standard’ housing market properties which were already on the market when the 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. Other exemptions are as follows:

1. Properties marketed before the commencement dates:
There is special provision for excluding properties marketed before the HIP duties came into force for a particular category of property:
- homes with four or more bedrooms that were on sale before 01/08/07
- homes with three or more bedrooms that were on sale before 10/09/07
- homes with one or two bedrooms that were on sale before 14/12/07

2. Residential properties not available for sale with vacant possession:
Where a residential property is available for sale without vacant possession HIP regulations will not apply. However, this exception will not apply where two or more dwellings in a sub-divided building that was originally built as a single dwelling are being marketed as a single property and one or more is not vacant.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. 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 information, please contact Elena Round at their Stafford branch on 01785 211411 or Paula Bladon-Coleman at Rugeley on 01889 583871

Disclaimer

The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. The law may have changed since this article was published.

Readers should not act on the basis of the information included and should take appropriate professional advice upon their own particular circumstances.