When don’t you need a HIP?
Norwich-based HIPs expert David Pett tells us.
The general rule is that when a residential property is offered for sale in the public arena a HIP is required. If a property is sold under a private arrangement between two individuals, and not offered for sale to others, then a HIP will not be required, although remember an energy performance certificate (EPC) will need to sought and produced.
Are there any other exceptions?
Yes – please see below which do not need a HIP.
*Residential properties not available for sale
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with vacant possession; session; for example, where a property is marketed with a tenant still in occupation.
*Seasonal and holiday accommodation; properties which have a restriction which limits the occupancy of it to 11 months or less in a year, or states it is holiday accommodation. Again, it would still need an EPC..
*Mixed sales; where a residential property is marketed for sale as ‘ancillary’ to one or more other buildings or areas of land used for non-residential purposes. For example, 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 only applies if at the time of first marketing, the sales material makes it clear the seller only intends to accept an offer for the property as one lot.
*Dual use of a dwelling/house; for example 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; 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 this is clear from marketing materials. For example, in the sale of a block of flats as a complete lot. If the flats are sold individually, a HIP will be required for each. If sold as a complete lot and during marketing an offer is made for one of the flats, for example the penthouse, then a HIP will still not be required as the transaction will be regarded as a private one given the flat was never marketed as a single unit to the public.
*Unsafe properties; those posing a serious risk to the health and safety of potential occupants.
*Properties due to be demolished
David Pett is a director of Hip2Go, at 18-20 Prince of Wales Road, Norwich NR1