HIPs

Home Information Packs (HIPs) were suspended with immediate effect on 21 May 2010 by the new coalition goverment.

The requirement for Energy Performance Certificates (EPC) has been retained. Also, where a housing association is dealing with Newbuild Homebuy sales with the property not yet physically complete at the first point of marketing, a Predicted Energy Assessment (PEA) still has to be provided.

Housing Minister Grant Shapps stated that retaining EPCs  and PEAs showed the government's commitment to a greener housing market, although realistically the government had no choice under the European Directives. 

The move has been widely welcomed by the property industry.  Robert Heslett, President of the Law Society, stated that 'relentless uncertainty in the housing market, coupled with the excessive costs to the consumer, has made the abandonment of Home Information Packs the only sensible option'. Unsurprisingly the Association of HIP Providers opposed the move, pointing out the benefits of providing information to buyers as early as possible. 

Our view is that the initial expense and administrative requirements of HIPs outweighed any benefits.  The standard of HIPS usually left a much to be desired. In dealing with sales for our housing association clients, we have always provided comprehensive information to a buyer's solicitor at an early stage.

To find out more, please contact Emma Evans

Saved by the saving clause

Landlords are constantly encouraged to include a 'saving clause' in certain notices required as a pre-requisite to proceedings for possession in case they get their dates wrong. In the case of Assured Shorthold Tenancies (ASTs) there is established authority (Lower Street Properties Ltd v Jones 1996) that an appropriately worded saving clause in a s21 Housing Act 1988 Notice will be effective in certain cases. However, there have been repeated challenges to the validity of variously worded clauses which continually raise some doubt in people's minds. One such recent case was Elias v Spencer.

In that case a landlord served a s21 notice on an assured shorthold tenant requiring possession 'after 22 November 2008 or, if this notice would otherwise be ineffective, after the date being the earliest date not earlier than two months after the date of service of this notice when shall expire a period of the assured shorthold tenancy'. The date of 22 November was incorrect because it was not the last day of a period of the tenancy as required by the Housing Act. The landlord sought to rely on the saving clause.

The saving clause was accepted by the judge hearing the case and a possession order was made. The tenant's application for permission to appeal was refused as the judge found the case to be indistinguishable from Lower Street Properties.

The higher court subsequently refused a renewed application for permission to appeal. Although Lower Street Properties had slightly different facts, the principle that the formula was perfectly good was clear.

To find out more, please contact Colin Hammond

New planning conditions

Housing Associations developing land need to be aware of the model remediation planning conditions which are currently being revised by the Planning Inspectorate.

The idea is to encourage consistency in planning permissions granted for development land. There will eventually be two sets of conditions: one for larger and more complex developments and another for those which are more straightforward.

At present there is no guidance on the difference between the two types of development. There is also inconsistency in the timing for the carrying out of remediation works. The set of conditions for smaller developments require remediation to the site to take place prior to commencement of development. The conditions for more complex developments state that works are to be implemented in accordance with an approved timetable.

The conditions do not specifically provide for situations where large developments are undertaken in phases, where it might not be possible to implement certain remediation methods or check their effectiveness until commencement of a specific phase of construction.

To find out more, please contact Edward Meers